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A 13% Yield: What Could Go Wrong?

There’s not much to like when it comes to structured notes.

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One of the fundamental truths about investing is that there is no such thing as a free lunch. An investment that promises higher returns is going to come with higher risks of losing money. And often, those bigger return promises not only come with greater risks, but with a lot more complexity and potentially, higher fees.

That is certainly the case with securities known as structured notes, investments that some financial advisors have been pitching to clients with growing frequency.

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Amy C. Arnott does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.