ETF Attorneys

When Leveraged And Inverse ETFs Lead To Serious Investor Losses. Our Trusted ETF Attorneys Can Help You Determine What Happened

Shepherd Smith Edwards and Kantas ETF Attorneys (investorlawyers.com) represents clients who have suffered losses from all kinds of exchange-traded funds (ETFs), including leveraged ETFs and inverse ETFs. These are complex investments, and you want to retain a knowledgeable securities firm that understands these products and why they can warrant grounds for a FINRA lawsuit against your broker-dealer.

ETFs are a kind of security that tracks a financial instrument, like an index or a security. They trade on exchanges and have a price that is impacted by what it is tracking.

Leveraged ETF: Employs debt and financial derivatives to improve the returns of an underlying index. It usually looks to track the index on a 3:1 or 2:1 basis. Most of these reset daily, which makes them a suitable short-term investment.  Just as a Leveraged ETF can magnify the gain,s it can also amplify the losses.

Because of the delay reset factor, a compounding error or volatility decay can occur. Small, repeated losses can add up, which may lead to a substantial divergence from the underlying index’s performance. The higher fees these exchange-traded funds charge can erode any returns.

Inverse ETF: Uses derivatives to make money from the drop in value of an underlying benchmark. Inverse exchange-traded fund investors then have a chance to make money during a drop in the underlying index or the market without having to make a short sale.

They can bring a compounding risk, a derivative securities risk by exposure, correlation risk,  high fees, illiquidity, underexposure or overexposure to benchmarks, short-sale exposure risks, and more.

Leveraged Inverse Exchange ETF: This one will attempt to enhance the performance of the index it is tracking when the market is going down.

These ETFs are high-risk and unsuitable for most retail investors and mostly appropriate for sophisticated investors from whom investing in them is part of a specific investing strategy that they understand. Unfortunately, there are brokers that will overconcentrate an investor’s money with leveraged ETFs, Inverse ETFS, and Leveraged inverse exchange ETFs in a grab for the high commissions and fees that they can earn and not because it is suitable for the customer.

Determining The Cause of Your Exchange-Traded Fund Losses

Our ETF loss law firm has been representing investors for decades. We understand how complex some portfolio losses can be. Because of our collective more than a 100 years of experience working in securities law and the securities industry, we are adept in identifying what happened and whether broker misconduct or negligence was involved.

We have gone up against regional brokerage firms, broker-dealers that local to where a customer resides, and the largest Wall Street Firms. Highly regarded by many financial firms’ opposing counsel and respected by peers, our securities law firm is committed to providing high-level representation and customized attention.

We approach each claim according to who our clients are and what their case needs. We lead with compassion and care, as well as a commitment to maximizing an investor’s chances for a full recovery.

Contact our Leveraged ETF Attorneys Today:

Over the years, we have helped thousands to collectively recoup many millions of dollars from the broker-dealers and investment advisers responsible.Call (800) 259-9010 or fill out this form to schedule your free, initial case consultation.