Articles Posted in Exchange Traded Funds

Our Experienced ETF Investor Loss Lawyers Represent Retail Investors, Retirees, and Sophisticated Investors

Actively Managed Exchange-Traded Fund Ranked Among The “10 Worst” of 2022

According to FinancialPlanning, actively managed exchange-traded funds (ETFs) made its list of the “10 worst-performing US ETFs of 2022.” The compilation is based on year-to-date returns as of December 27, 2022 with data coming from Morningstar Direct:

Our Skilled ETF Fund Investor Loss Attorneys Continue to Investigate Brokers Over Alerian MLP And Others

Morningstar Lists 15 Funds as “Wealth Destroyers” 

Shepherd Smith Edwards & Kantas, LLP Investor Loss Attorneys ( remains hard at work investigating the brokerage firms that may have unsuitably sold investments in Alerian MLP ETF (AMPL) to investors leading to significant losses in their portfolios. Shepherd Smith Edwards & Kantas Investor Loss Attorneys has already represented a number of investors who lost substantial savings in AMPL and similar risky/poor-performing funds.

Should You Call an ETF Investor Loss Lawyer You Suffered Investor Losses in Ark Innovation ETF

Cetera and Other Broker-Dealers Now Facing ETF Investor Loss Claims From Customers

Many investors of the Ark Innovation Exchange-Traded Fund (ARKK) have been blindsided by their losses. According to sources, the ETF has lost more than 55% year-to-date and has seriously underperformed in the broad market. This is a complex structured note that has proven to be incredibly risky and volatile. It is also non-diversified, with nearly 50% of its total assets invested in just 10 companies.

Brokers Allegedly Involved Were Also Harvest Group Wealth Management Investment Advisers 

Massachusetts Secretary of the Commonwealth William Galvin has filed a complaint against Purshe Kaplan Sterling Investments (PKS Investments), accusing the broker-dealer of failing to supervise its financial advisors. These advisors who were dually registered through another financial firm allegedly sold exchange-traded funds (ETFs) that were unsuitable for customers. 

This other firm was Waltham-based investment advisor Harvest Group Wealth Management. As a result, the state securities regulator contends that investors suffered $2.3M in losses.

Sanctuary Wealth Ordered To Pay Over $370K in Restitution to ETF Customers

Independent broker-dealer Sanctuary Wealth, formerly David A. Noyes & Co., has been censured by the Financial Industry Regulatory Authority (FINRA). It must now pay a $160K fine and over $370K in restitution for its failure to supervise certain financial products, including leveraged and inverse exchange-traded funds (ETFs), and its brokers’ external activities.

According to the self-regulatory organization (SRO), going as far back as 2014 through the end of 2018 the brokerage firm failed to address in a “reasonable” manner the “unique features and risks” involving selling inverse and leveraged ETFs, which Sanctuary was required to do according to FINRA’s Rule 2111 regarding suitability. 

Retail Investors Were Allegedly Told To Hold Exchange-Traded Products for Too Long 

In separate settlements reached with the US Securities and Exchange Commission (SEC), Royal Alliance Associates, Securities America Advisors, Summit Financial Group, Benjamin F. Edwards & Co., and American Portfolio Financial Services / American Portfolio Advisers will pay over $3M in penalties and restitution for their allegedly unsuitable sales of exchange-traded products (ETPs) to customers between January 2016 and April 2020. The firms did not deny or admit to the findings. 

All of the respondents recommended and sold iPath S&P 500 VIX Short–Term Futures ETNs (VXX), which utilize short-terms futures contracts try tracking the S&P 500 Index’s implied volatility. It also is considered one of the largest and most volatile ETPs and among the worst-performing from last year.

Barred Ohio Stockbroker Accused of Over 500 Unsuitable Exchange Traded Fund Transactions 

Dominic Anthony Tropiano, a former registered broker in Ohio, is now facing US Securities and Exchange Commission (SEC) fraud charges. The regulator contends that Tropiano placed more than 500 unsuitable and unauthorized trades in 40 customer accounts belonging to retail customers, including elderly investors. 

These transactions and investment strategies involved leveraged exchange-traded funds (ETFs), which are complex, very risky securities. As a result, customers allegedly lost over $1M. Meanwhile, Tropiano earned at least $115K in bonuses and commissions.

Structured Product Losses Stun Retail Investors Who Should Never Have Been Told By Brokers To Buy Them

The recent market turbulence caused by the coronavirus has caused many investors’ portfolios to suffer huge losses, and nowhere is this more evident as the losses suffered by those who invested heavily in structured products, including exchange-traded notes (ETNs) and exchange-traded funds (ETFs). 

And while yes, no one could have anticipated COVID-19 battering the economy and the markets, for many investors, they likely shouldn’t have and wouldn’t have gotten involved in these complex investments were it not for the recommendation of their stockbroker.

ETF Investors Of United States Oil Fund May Not Have Known Full Extent Of Risks

Our investment fraud lawyers are offering free case consultations to investors who’ve lost money in the United States Oil Fund (USO) after it dropped 30%. The exchange-traded security continues to make changes to its structure in an attempt to stave off more losses. Part of this now involves giving itself the leeway to get into long-term contracts. The USO exchange-traded fund (ETF), which keeps track of oil prices, is popular among retail investors. 

Unfortunately, many of these investors think they are betting on oil prices’ long-term rise and do not fully comprehend how the futures market operates or that these types of funds hold primarily short-dated oil futures contracts and should never be held long-term. 

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