Nationally recognized securities law firm Dimond Kaplan & Rothstein, P.A. is investigating brokerage firm recommendations and sales of UBS ETRACS exchange-traded notes (ETNs). The UBS ETRACS ETNs were sold by brokerage firms including UBS Financial Services, Inc. and TD Ameritrade.
These are risky, complex products that were not suitable for many investors. Dimond Kaplan & Rothstein, P.A. is investigating potential sales practice violations associated with recommendations and sales of the risky UBS ETRACS ETNs.
The potential violations would include unsuitable recommendations and the failure to fully and fairly disclose the risks of the UBS ETRACS ETNs.
ETRACS ETNs Are Complex and Risky
ETRACS ETNs are senior, unsecured, unsubordinated debt securities that are designed to track the total return of a specific market index. They are risky, leveraged products that expose investors to significant risk of loss. Due to their risk and complexity, UBS ETRACS ETNs generally would not be appropriate for investors with limited assets, retirees seeking a stable source of income, or conservative investors seeking to preserve their capital. Global securities markets have crashed during the COVID-19 pandemic.
As a result, UBS has called mandatory redemptions of certain ETRACS and has frozen the trading of other ETRACS. Investors have lost a substantial percentage of the money that they invested in ETRACS.
UBS ETRACS ETNS: The List
The leveraged UBS ETRACS ETNs include the following: (Symbol Description)
BDCL 2x Leveraged Long Wells Fargo Business Development Company Index
BDCY 2x Leveraged Long Wells Fargo Business Development Company Index
CEFL 2x Leveraged Closed-End Fund
CEFZ 2x Leveraged Closed-End Fund
DVHL 2x Leveraged Diversified High Income
DVYL 2x Leveraged Dow Jones Select Dividend Index
HDLB 2x Leveraged U.S. High Dividend Low Volatility
HOML 2x Leveraged ISE Exclusively Homebuilders
LBDC 2x Leveraged Long Wells Fargo Business Development Company
LMLB 2x Leveraged Wells Fargo MLP Ex-Energy
LRET 2x Leveraged MSCI US REIT Index
MLPQ 2x Monthly Leveraged Alerian MLP Infrastructure Index
MLPZ 2x Monthly Leveraged S&P MLP Index
MORL 2x Leveraged Mortgage REIT
MRRL 2x Leveraged Mortgage REIT
SDYL 2x Leveraged S&P Dividend
SMHB 2x Leveraged US Small Cap High Dividend
SMHD 2x Leveraged US Small Cap High Dividend
WTID 3x Inverse Crude ETN linked to the Bloomberg WTI Crude Oil Subindex
Investors May Have a Claim to Recover UBS ETRACS Losses
If your broker recommended that you purchase UBS ETRACS ETNs and you have lost money in those investments, you may have a claim to recover those losses through a FINRA arbitration claim.
Contact Dimond Kaplan & Rothstein To Discuss Your Case
Contact a Dimond Kaplan & Rothstein, P.A. lawyer to discuss your rights and options. All such consultations are at no cost. If you choose to hire our law firm, we handle such representations on a contingency-fee basis, wherein we only are paid if we recover money for you.
From its offices in Miami, Los Angeles, New York, Detroit, West Palm Beach, and Naples, Dimond Kaplan & Rothstein, P.A. represents investors throughout the United States, Mexico, and Latin America in stockbroker misconduct and investment fraud cases.
We are a leading, experienced firm that has recovered hundreds of millions of dollars for clients. Contact us today.
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