Are you worried about your investments in UBS ETRACS? UBS Financial and TD Ameritrade brokers allegedly recommended risky investment in UBS ETRACS exchange-traded notes (ETNs).
The Sonn Law Group is investigating allegations that brokers unsuitably recommended investments in UBS ETRACS ETNs. If you or a family member has suffered losses investing in UBS ETRACS ETNs, we want to discuss your case. Please contact us today for a free review of your case.
Sonn Law Group is investigating allegations that brokers from UBS Financial Services and TD Ameritrade recommended to their clients that they invest in UBS ETRACS exchange-trade notes (“ETNs”), despite the fact that these investments are unsuitable for many investors.
UBS ETRACS ETNs are unsecured debt securities designed to track the total return of a certain market index. UBS characterizes the notes as “senior” and “unsubordinated.” Unsubordinated debt, or senior debt, must be repaid before any other form of debt. If the debtor goes bankrupt, holders of this type of debt are the first to be paid.
Recent Stockmarket Crash Cause Massive Loss of Value in UBS ETRACS ETNs, Triggering Mandatory Redemption
The value of the ETNs has plummeted approximately 60%, triggering mandatory redemption and raising questions about sales practice violations by brokers who recommended the investments.
During March 2020, the COVID-19 pandemic caused the global markets to crash which resulted in mandatory redemption of these ETRACS at losses of 60% or more to investors:
- ETRACS Monthly Pay 2xLeveraged U.S. High Dividend Low Volatility ETN (HDLV)
- ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN (SMHD)
- ETRACS Monthly Pay 2xLeveraged Diversified High Income ETN (DVHL)
- ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN (CEFL)
- ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN (CEFZ)
- ETRACS 2xLeveraged Long Wells Fargo Business Development Company Index ETN (BDCL)
- ETRACS 2xLeveraged Long Wells Fargo Business Development Company ETN (LBDC)
- ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (MORL)
- ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (MRRL)
- ETRACS Monthly Pay 2xLeveraged MSCI US REIT INDEX ETN (LRET)
- ETRACS 2x Monthly Leveraged Alerian MLP Infrastructure Index ETN (MLPQ)
- ETRACS Monthly Reset 2xLeveraged ISE Exclusively Homebuilders ETN (HOML)
- ETRACS 2xMonthly Leveraged S&P MLP Index ETN Series B (MLPZ)
- ETRACS Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN (LMLP)
- ETRACS ProShares Daily 3x Inverse Crude ETN linked to the Bloomberg WTI Crude Oil Subindex (WTID)
Financial advisors are required to make suitable investment recommendations, accounting for your age, income, net worth, investment experience, and investment objectives. Sonn Law Group is investigating whether brokers who recommended these investments sufficiently disclosed their risks to investors. UBS Financial advisors should not have sold risky ETRACS to retirees or other conservative investors who needed income or principal preservation.
Contact Sonn Law to Discuss Recovery Options
If you suffered losses investing in UBS ETRACS ETNs, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.