{"id":1569,"date":"2014-12-24T21:25:31","date_gmt":"2014-12-24T21:25:31","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2014\/12\/exchangetraded_fund_strategist"},"modified":"2022-03-11T13:34:32","modified_gmt":"2022-03-11T19:34:32","slug":"exchangetraded-fund-strategist","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/exchangetraded-fund-strategist\/","title":{"rendered":"Exchange-Traded Fund Strategist F-Squared to Pay $35M to Settle Charges that It Misled Investors"},"content":{"rendered":"

\t\t\t\tF-Squared Investments Inc. has consented to pay $35M to settle Securities and Exchange Commission charges accusing the firm of making false claims regarding the performance of a key investment product. F-Squared admitted that it misled clients for several years about its AlphaSector strategy.<\/p>\n

F-Squared is the largest marketer of index products that use Exchange-Traded Funds<\/a>. The SEC claims that F-Squared falsely advertised that the AlphaSector investment strategy had a successful track record that was based on actual investment performance for real clients when, in fact, the algorithm touted didn’t even exist during the noted time period.<\/p>\n

The algorithm was the basis of signals sent from a third party data provider indicating when to sell or buy an investment. F-Squared and Howard Present, its co-founder and ex-CEO, used the signals to develop the AlphaSector, a model portfolio of sector ETFs that could be rebalanced from time to time when the signals changed. After its launch in 2008, AlphaSector’s indexes became the company’s largest revenue source.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

F-Squared Investments Inc. has consented to pay $35M to settle Securities and Exchange Commission charges accusing the firm of making false claims regarding the performance of a key investment product. F-Squared admitted that it misled clients for several years about its AlphaSector strategy. F-Squared is the largest marketer of index products that use Exchange-Traded Funds. […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4023,3801,3760],"tags":[2596,2890,2961],"class_list":["post-1569","post","type-post","status-publish","format-standard","hentry","category-exchange-traded-funds","category-sec","category-sec-enforcement","tag-exchange-traded-funds","tag-f-squared","tag-sec"],"yoast_head":"\nF-Squared to Pay $35M to Settle Charges that It Misled Investors — Investor Lawyers Blog<\/title>\n<meta name=\"description\" content=\"F-Squared Inc. has agreed to pay $35M to settle SEC charges accusing the firm of making false claims regarding the performance of a key investment product.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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