Dimond Kaplan & Rothstein, P.A. Investigates Sales of Leveraged UBS ETRACS Exchange Traded Notes
( http://www.dkrpa.com ) is investigating brokerage firm recommendations and sales of UBS ETRACS exchange-traded notes (ETNs).
MIAMI, March 26, 2020 (GLOBE NEWSWIRE) -- Nationally recognized securities law firm Dimond Kaplan & Rothstein, P.A. (http://www.dkrpa.com) 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.
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 ETN 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 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, West Palm Beach, New York, Los Angeles, and Naples Dimond Kaplan & Rothstein, P.A. represents investors throughout the United States, Mexico, and throughout Latin America in stockbroker misconduct and investment fraud cases.
Contact:
Jeffrey B. Kaplan, Esq.
[email protected]
2665 S. Bayshore Drive
Penthouse 2B
Miami, Florida 33133
(888) 578-6255
URL http://www.dkrpa.com
2029 Century Park East
Century Plaza Tower
Suite 400N
Los Angeles, CA 90067
(888) 578-6255
