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Structured investments are financial instruments that combine a debt security – such as a bond or certificate of deposit – with one or more derivatives linked to a reference asset, like an index, ETF, stock, commodity or currency. They are designed to manage risk, generate income, or provide targeted market exposure.
Structured investments align with investor objectives across four elements:
The most common types of structured investments are:
Structured notes can help investors pursue specific objectives—such as income or growth—or express a market view that complements their overall portfolio:
| Objective | What it Means |
| Income | Periodic coupon payments based on the performance of the underlying asset with some principal protection. |
| Growth | Potential to participate in gains of the underlying asset with full or partial downside protection. |
In addition, different types of protection are offered:
Implementation Insight:
Matching product features —such as coupon type, underlier, and term —to an investor’s outlook and risk profile is critical to aligning expectations with outcomes.
Implementation Insight:
Always review the offering materials carefully for terms, fees, caps, participation rates, fees, liquidity provisions, and issuer strength.
Goal: An investor wants to grow money by investing in emerging markets but also wants some protection if those markets fall.
Possible Solution: A 4-year note linked to the MSCI Emerging Markets Index.
The visuals included are hypothetical examples. They do not reflect any specific structured investment and are solely intended to help illustrate how different payment and protection methods work.
| Myth | Fact |
| Structured investments are one-size-fits-all | Notes are customizable (term, underlier, protection, payout). |
| They always require taking on full market risk | Protection can be full, partial, or contingent; risk depends on terms. |
| Only equity-linked structures exist | Underliers can include indices, ETFs, single stock, commodities, rates FX. |
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