📈 July 2025 Structured Note Opportunities: Hedging After the Rally

As of early July 2025, equity markets have continued their surge off the April lows, with the S&P 500 (SPY) up approximately 9.2% and the Nasdaq-100 (NDX) up 11.7%. Since the April bottom, SPY has gained 14.4% and NDX has rallied an impressive 18.9%. These strong moves have taken us just above the highs set in February, prompting many investors to ask a familiar question: Can this rally continue?

If you believe the market may stall or churn at these elevated levels, generating returns through traditional strategies may prove difficult. In such an environment, structured notes can offer a compelling alternative with defined outcomes and risk-adjusted return potential.

Below are several featured structured notes issued in July 2025, offering different combinations of income, growth potential, and principal protection.

📄 Structured Note #1: Callable Income Note based on the worst performer of NDX, SPX, and RTY

Term: 3 years
Coupon: 9.499% annual income, paid if all three indexes are above 75% of their original value
Callable: Can be called after 1 year if the worst-performing index is above its initial value
Protection: 30% contingent barrier on the downside. If not called and worst index is down less than 30%, full principal is returned. Below that, losses are 1-to-1

This note may appeal to investors seeking high income in a range-bound market with some protection against moderate downside.

📉 Structured Note #2: Callable Growth Note on based on the worst performer of Apple, Microsoft, and Nvidia

Callable: After 1 year, if the worst performer is above its starting level, the note pays a 35% coupon and is called
At Maturity: If not called, pays 3x the return of the worst performer after 3 years
Downside Protection: 50% contingent barrier – full principal is returned unless the worst-performing stock is down more than 50%
Important: If at maturity the worst-performing stock is down more than 50% from its original value, the investor will incur a loss equal to the full percentage decline of that worst-performing stock. For example, if the worst performer is down 60%, the investor would lose 60% of their principal. There is no buffer beyond the 50% barrier, making this note appropriate only for those comfortable with potential downside.

This note is ideal for investors who believe in tech’s long-term strength but want to limit downside risk while potentially capturing outsized upside.

⌛ Structured Note #3: Growth Note with Permanent Protection: Offers 1.5x the performance of the underlying index with built-in 15% permanent protection

Caps by Index:

SX5E: 42.5% cap
RTY: 26.5% cap
QQQ: 24% cap
Term: 2 years
Downside: First 15% of losses are permanently protected
What is SX5E? SX5E refers to the EURO STOXX 50 Index, a leading European blue-chip index comprising 50 large, sector-leading companies across the eurozone.

What is RTY? RTY represents the Russell 2000 Index, a benchmark for U.S. small-cap stocks.

What is QQQ? QQQ tracks the Nasdaq-100 Index, which includes 100 of the largest non-financial companies listed on the Nasdaq.

This note suits investors who want equity exposure with downside protection and amplified upside—ideal for moderate bulls.

🌎 Structured Note #4: Classic Growth Notes for Long-Term Investors

Option A:

Underlying: Worst of SX5E and EFA
Term 5 years 
Return: 2.4x the performance of the worst performer
Protection: 30% contingent barrier on downside
What is EFA? EFA is the iShares MSCI EAFE ETF, which tracks large- and mid-cap developed-market equities outside of the U.S. and Canada—primarily Europe, Australasia, and the Far East.

Option B:

Underlying: SPXFP (S&P 500 Price Return Index w/ Foreign Protection)
Return: 2.16x the performance
Term: 5 years
Protection: 30% contingent barrier
What is SPXFP? SPXFP refers to a version of the S&P 500 Index that adjusts for foreign currency protection and reflects the price return only—excluding dividends.

These are built for long-term investors seeking amplified returns with defined risk thresholds—ideal if you’re planning around retirement or a future liquidity need.

🔎 Why Structured Notes Now?

With markets near all-time highs and volatility suppressed, many traditional assets appear fully priced. Structured notes provide investors a way to generate returns through defined outcomes, conditional protection, and enhanced upside—especially useful in a market that may drift sideways or struggle to sustain momentum.

If you’re interested in exploring how these notes might fit into your portfolio, contact us to schedule a personalized review.