ETF Investor Loss Lawyer: Know When You Need Contact One

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.

Unfortunately, it has since come to light that a number of brokerage firms may have unsuitably sold this exchange-traded fund to inexperienced investors who lacked the risk tolerance level or portfolio to weather the changes that can impact this type of investment. Our seasoned exchange-traded fund investor loss attorneys are representing a number of these claimants in the Financial Industry Regulatory Authority (FINRA) against Cetera Investment Services and other broker-dealers that marketed and sold Ark Innovation ETF to them.

Chinese Investor Files Seven-Figure FINRA Arbitration Claim Alleging Securities Fraud

Most recently, Shepherd Smith Edwards and Kantas ( filed a FINRA lawsuit against Cetera Investment Services and its financial advisor Weina Hou who is based in San Mateo, CA. The claimant, a Chinese investor, contends that not only did her Cetera broker unsuitably recommend Ark Innovation ETF, overconcentrating several hundred thousand dollars in this structured product, but also alleged misrepresentations and omissions touting this exchange-traded fund as a low-risk investing opportunity were made.

This claimant had zero previous investing experience, was not fluent in English, and had been content to safely invest her funds in CDs. It was Cetera broker Weina Hou who approached her, communicating in Chinese, and allegedly touting investments that would give this investor greater returns without having to take on more risk of loss. Instead, Hou proceeded to recommend high-risk structured notes like Ark Innovation ETF, which includes an autocallable feature that can lead to losses for investors pending certain triggers.

Now, with the help of our expert FINRA arbitration lawyers, this investor is seeking up to $1M in damages from Cetera and Hou.

What Are Some of the Other ETF Risks To Ark Innovation Investors?

ARK Innovation ETF investments are illiquid and cannot be sold. This exchange-traded fund looks for long-term capital growth by investing mostly in the domestic and foreign equity securities of companies that are significant to its theme of “disruptive innovation.” Because of its autocallable feature, when Ark Innovation ETF—up nearly 300% from where it had been the year prior when Cetera recommended and sold this product to this claimant—dropped by about 67% the following year, the claimant went on to lose hundreds of thousands of dollars. Not only that, but her Cetera broker had concentrated her funds in multiple structured notes.

Broker negligence appears to have been at play as there does not appear to be a sound reason why this unsophisticated investor and retail customer should have marketed and sold this risky, illiquid ETF. Not only that, but because this exchange-traded fund is a traded security, financial advisors stand to earn commissions on these types of transactions. One can’t help but wonder if making money, overlooking this client’s best interests, took precedence in many instances where alleged unsuitability and false claims were involved.

Not only that, but Cetera appears to have failed to supervise this broker and its activities.

Why You Should Contact Our Knowledgeable Ark Innovation ETF Investor Loss Lawyers

Shepherds Smith Edwards and Kantas team of ETF Investor Loss Lawyer teams have helped thousands of investors, including foreign nationals, in recouping losses caused by US-based brokerage firms whose financial advisors committed broker fraud or negligence. Over the years, we have recouped many millions of dollars for our clients.

This is not the only FINRA arbitration claim that our skilled broker negligence attorneys have recently filed against Cetera for broker negligence involving the sales of different kinds of products that have negatively impacted the portfolios of their customers, including foreign nationals. Many of these non-US citizens are Chinese nationals who placed their trust in Cetera brokers who share the same culture of origin and language.

If you are an investor who sustained significant losses in Ark Innovation ETF, it is important that you explore your legal options right away.

To schedule your free, no-obligation case assessment, call (800) 259-9010 today.




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