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August 5, 2026
Structured products, also known as Market-Linked Products, have evolved significantly over the past decade. Once viewed as tools reserved for institutional or ultra‑wealthy investors, today’s structured products are more transparent, customizable, and accessible than ever before.
Designed to help investors manage risk, generate income, and navigate uncertain markets, these investments combine familiar assets—such as major stock market indexes—with clearly defined features and outcomes. As a result, structured products have seen rapid growth: according to SRP.com (Structured Retail Products) industry issuance increased from approximately $102 billion in 2023 to an estimated $165 billion in 2025, reflecting rising demand from investors seeking alternatives to traditional stocks and bonds.
If you’ve been curious but cautious, you’re not alone. Below, we address five of the most common questions investors have about structured products.
Not necessarily. Many structured products, while often misunderstood as speculative investments, are designed specifically to manage risk, not increase it, depending on the structure.
At their core, structured products link returns to the performance of a well‑known underlying asset, such as the S&P 500®, Nasdaq‑100®, or Russell 2000®. What makes them different from investing directly in those markets is that they can include built‑in downside protection in exchange for potentially capped upside or the requirement to hold for an increased tenure.
Depending on the structure, a product may:
For more conservative investors, it’s possible to invest in market-linked CDs that offer 100% principal protection with FDIC insurance at maturity, up to applicable limits. Depending on your risk tolerance, you can also select principal-protected notes that offer full principal back at maturity, or market-linked notes with varying levels of protection, subject to the credit risk of the issuer.1
In short, the risk level is not one‑size‑fits‑all and you can choose how much market exposure and protection you want.
Not anymore. While structured products were once primarily used by institutional and high‑net‑worth investors, many offerings today are available with minimum investments as low as $1,000. This makes the same types of outcome‑based strategies accessible to a much broader audience.
Importantly, structured products are designed with clearly defined terms, allowing investors to understand what they’re buying before they invest.
Structured products are considered complex investments so it is important to know that they are built around clearly defined features that investors can understand upfront:
To help advisors and their clients fully understand the benefits and potential risks of structured investments, InspereX has created a library of award-winning, FINRA-reviewed educational materials. You can access this library on the InspereX website: https://www.insperex.com/market-linked-products/client-friendly-literature/
Like most investment products, structured products include costs that investors should understand upfront. These may reflect:
Unlike traditional investments, however, these costs are typically embedded in the product structure, rather than charged as ongoing management fees or brokerage commissions.
Structured products are designed as buy‑and‑hold investments, meaning their value is intended to be realized at maturity. When held until that date, market‑linked CDs and principal‑protected notes return the original investment amount (subject to issuer credit risk), along with any earned income or performance‑based return.
Understanding the terms upfront is critical—and investors should always review offering documents carefully.
Because structured products can be designed with varying levels of protection, income, and participation, they allow investors to fine‑tune risk and reward far more precisely than traditional investments.
This adaptability means there is often a structure that aligns with your goals—whether you prioritize income, capital preservation, growth, or balance across all three.
For more information about Structured Products (also known as Market-Linked Products) visit the InspereX library of educational material at https://www.insperex.com/market-linked-products/client-friendly-literature/. Please consult with your financial advisor about the risks and the suitability of these products in your portfolio.
1 Any return of principal, as well as interest and gains generated, are subject to the credit risk of the issuer and terms of the offering documents, which could include participation rates, interim caps, and various risks. Dividends paid on the underlying asset are not passed through to the Market-Linked Product. There is no guarantee that a Market-Linked Product will generate a positive return. Any applicable downside protection will be realized only at maturity, which may range up to 10 years. For certain Market-Linked Notes, return at maturity could be less than the original amount invested. Regarding Market-Linked CDs, the Federal Deposit Insurance Corporation (FDIC) insures principal amounts up to applicable limits in the even the issuer becomes insolvent.
What you should know before investing in Market-Linked Products…
Speak with your financial professional about the risks and suitability of Market-Linked Products in your portfolio. Market-Linked Products, also known as Structured Products, are considered complex investments and may not be suitable for all investors, so it’s important to review the relevant offering documents.
Call risk
Some Market-Linked Products (MLPs) are callable or redeemable, solely at the option of the issuer. The issuer is not obligated to redeem a callable note, and will typically call a Note when it is most advantageous for them to do so. If the Note is called, it is possible that you may be unable to reinvest in a Note with similar or better terms.
Credit risk
For a Market-Linked CD, any investment above the FDIC allowable limit is subject to the credit risk of the issuer, as are any market-linked returns. A Market Linked Note or Principal Protected Notes represents a senior unsecured debt that is subject to the credit risk of the issuer. If the issuer goes into default, any return of principal, interest and gains generated could be at risk of loss.
Fees
MLPs are subject to fees and costs, including commission paid to your financial professional, structuring and development costs, and offering expenses. There are also trading costs, including costs to hedge the product. Any sales prior to maturity will be reduced by all associated fees and costs, which are detailed in the offering documents.
Liquidity risk
MLPs are intended to be held until maturity and there is no formal secondary market for the product, which makes early redemptions difficult and subject to a variety of market-related factors. If you are able to redeem MLPs prior to maturity, the redemption proceeds may be less than the amount you invested due to fluctuations in the underlying assets and other market-related factors.
Performance risk
MLPs pay a return based upon the performance of an underlying asset as outlined in the offering documents. These terms could include interim caps, averaging, and rates of participation in the underlying asset. MLPs do not pay dividends. If dividends are declared on the underlying asset, they will be excluded when calculating the performance. There are a variety of factors that may influence the performance of the underlying asset such as volatility, interest rate moves, and time to maturity. Additionally, potential fees charged on the underlying asset may reduce or eliminate any positive return in that underlying asset, thereby reducing the return on the MLP.
Tax implications
The tax treatment and timing of tax payments for a Market-Linked Product vary depending on the structure and type of account it resides in. For Market-Linked CDs and Principal Protected Notes in non-retirement accounts, you may be required to pay ordinary income tax on the Original Issue Discount (OID) amount calculated by the issuer each year, even if you do not receive interest payments during the life of the investment. Your brokerage firm or account custodian should provide the applicable 1099 forms for tax purposes. For specific terms, please refer to the offering documents or consult a tax professional. For additional information, please refer to the offering documents.
Volatility
Volatility refers to the amount of uncertainty or risk in a investment’s value, and the size of changes in that value. Higher volatility indicates that the price of the investment has the potential to change dramatically over a short period of time, in either direction. Volatility, the degree of positive and negative swings in the index, may increase or decrease. Uncertainty in the market can have a negative effect on statement values.
InspereX LLC and its affiliates explicitly disclaim any responsibility for product suitability or suitability determinations related to individual investors. This information should not be regarded by recipients as a substitute for the exercise of their own independent judgment, and the information provided herein is not an offer, solicitation or a recommendation to buy, sell, or hold any security or investment strategy. There can be no assurance that the investments shown herein were or will be profitable, and this material does not take into account any investor’s particular investment objectives, financial situation, particular needs, strategies, tax status, or time horizon.
The investment products discussed herein are considered complex investment products. Such products contain unique features, risks, terms, conditions, fees, charges, and expenses specific to each product. The overall performance of the product is dependent on the performance of an underlying or linked derivative financial instrument, formula, or strategy. Return of principal is not guaranteed and is subject to the credit risk of the issuer. Investments in complex products are subject to the risks of the underlying reference asset classes to which the product may be linked, which include, but are not limited to, market risk, liquidity risk, call risk, income risk, reinvestment risk, as well as other risks associated with foreign, developing, or emerging markets, such as currency, political, and economic risks. Depending upon the particular complex product, participation in any underlying asset (“underlier”) is subject to certain caps and restrictions. Any investment product with leverage associated may work for or against the investor. Market-Linked Products are subject to the credit risk of the issuer. Investors who sell complex products or Market-Linked Products prior to maturity are subject to the risk of loss of principal, as there may not be an active secondary market. You should not purchase a complex investment product until you have read the specific offering documentation and understand the specific investment terms, features, risks, fees, charges, and expenses of such investment.
The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy securities. Investment products described herein may not be offered for sale in any state or jurisdiction in which such as offer, solicitation, or sale would be unlawful or prohibited by the specific offering documentation.
For all Market-Linked Products, excluding Market-Linked CDs, the following applies: Not FDIC insured // Not bank guaranteed // May lose value // Not a bank deposit // Not insured by any government agency
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