Have You Lost Money as a Result of Leveraged UBS ETRACS Exchange Traded Notes?

Dimond Kaplan & Rothstein, P.A. Investigates Sales of Leveraged UBS ETRACS Exchange Traded Notes

Dimond Kaplan & Rothstein, P.A. is investigating brokerage firm recommendations and sales of
UBS ETRACS exchange-traded notes (ETNs).

As these are risky, complex products that are 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 including unsuitable recommendations and the failure to fully and fairly disclose the risks of these types of investments. The UBS ETRACS ETNs were sold by brokerage firms including UBS Financial Services, Inc. and TD Ameritrade.

Since global securities markets have crashed as a result of the COVID-19 pandemic, UBS has called mandatory redemptions of certain ETRACS and has frozen the trading of other ETRACS. This has resulted in losses for investors, many of whom have lost a substantial percentage of the money that they invested in ETRACS.

ETRACS ETNs Are Complex and Risky Investments

ETRACS ETNs debt securities that are designed to track the total return of a specific market index. They are senior, unsecured, unsubordinated 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 most investors. This includes investors with limited assets, retirees seeking a stable source of income, or conservative investors seeking to preserve their capital.