Are Buffered Notes a Good Investment?

Unlike Principal Protected Notes, Buffered Notes offer a limited amount of downside protection. For example, a Buffered Note may protect the investor for the first 25% of erosion of the underlying asset, but any decline in value beyond that is not protected.

What is a buffer in investment?

First, these complicated funds require some explanation: Buffer ETFs don't own any actual stocks or bonds; instead, they use options to track the performance of an index. Investors forgo some potential returns for protection against some losses.

Are market linked notes a good investment?

The Market-Linked Note may not be a suitable investment for all investors. In particular, no investor should purchase a Market-Linked Note unless they understand and are able to bear the associated market, liquidity and yield risks. Market-Linked Notes are not FDIC-insured and principal is not guaranteed for all Notes.