Structured products are financial instruments created by major issuers. Structured product investments offer targeted investment outcomes by linking returns to the performance of an underlying asset, like a stock index. Their performance is tied to the performance of that underlying asset, with built-in rules that define their potential upside and downside. Unlike traditional assets, structured products offer a new way to pursue growth, income, or capital preservation with greater predictability.

A wide variety of these products are available to investors. Some major types include:  Principle Protected Notes, Growth Notes, Equity Linked Notes, Credit Linked Notes, and Yield Enhancement Notes. Structured product notes can be ‘structured’ to provide downside market protection, provide upside (or enhanced) participation, provide regular payments/income in the form of coupons if certain market conditions are met, and also to provide a payout/return at maturity. Structured notes can be an effective portfolio investment because of their flexibility and customization options that can be tailored to client needs.

Traditionally used by institutional investors or in the private banking world with the ultra-wealthy, structured notes are now available with minimum investments as low as $1000 to most investors through financial advisors, making them available to almost everyone.

As with any investment product, structured products come with risks. The level of risk is dependent upon the particular product selected. Each product comes with clearly defined parameters, and a qualified financial advisor will help you understand the risks associated with your investment.