Your client, age 60, is not comfortable taking substantial risks and is interested in capital preservation. Which investment should you NOT suggest?

In this scenario, the primary concern for the client is capital preservation due to their age and risk aversion. Therefore, suggesting an investment that aligns with these priorities is crucial. A structured product like an Exchange-Traded Note (ETN) can carry significant risks since its value can fluctuate with the market and is ultimately tied to the creditworthiness of its issuer.

ETNs are generally not suitable for investors prioritizing capital preservation because they can be sensitive to market movements and may not provide the stability that a risk-averse investor seeks. Instead, options like money market funds are designed to offer low-risk investments with a focus on capital preservation, making them a more appropriate choice for the client who wishes to avoid substantial risks.

Thus, suggesting an ETN would not align with the client's investment goals and risk tolerance.