March 9, 2012 Comments (0) Blog, Securities Fraud

Recovery of C-Tracks ETN Citi Volatility Index Total Return Losses

(Last Updated On: July 17, 2015)

Did your financial advisor bet big on the C-Tracks ETN Citi Volatility Index Total Return?  If so, the securities attorneys of The White Law Group may be able to help.

It is being reported that this ETN from Citi has posted the most severe year-to-date decline in the Volatility ETFdb Category, the result of a unique methodology employed. The exposure offered by CVOL is multi-faceted; this ETN combines directional exposure to the implied volatility of large cap U.S. stocks through positions in third- and fourth-month futures contracts on the CBOE Volatility Index with short exposure to the S&P 500 Total Return Index. That worked well when volatility spiked during the summer, but over the longer term CVOL has struggled.  Apparently the fund is down a staggering 48%.

Financial professionals and brokerage firms have a duty to recommend only investments that are appropriate for the client in light of the client’s age, investment experience, net worth, and investment objectives.

While ETFs and ETNs are often sold as conservative ways to track the market, or a particular sector of the market, this is an over-simplification of the complicated trading strategies necessary to accomplish this.  Additionally, tracking a particular sector of the market is not necessarily a conservative trading strategy (depending on the concentration level of the investment relative to the other assets in your account and the particular sector).

If your financial advisor bet big on an ETN like the C-Tracks ETN Citi Volatility Index Total Return and you suffered substantial losses, you may have a claim to recover your losses through FINRA arbitration.

FINRA is the regulatory body governing the securities industry.  It has a dispute resolution forum specifically designed for disputes between investors and brokerage firms.

If you believe that your financial professional took an unnecessarily risky position in an ETF, the securities attorneys of The White Law Group may be able to help.

For a free consultation, please call The White Law Group’s Chicago office at 312/238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

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