May 10, 2012 Comments (0) Blog, Securities Fraud

Recovery of TVIX ETF Losses

(Last Updated On: July 17, 2015)

Have you suffered losses in the TVIX ETF?  If so, the securities attorneys of The White Law Group may be able to help.

The White Law Group is currently investigating the liability that brokerage firms may have for recommending complicated and high risk ETF’s like TVIX.

The VelocityShares Daily 2x VIX Short-Term ETN (TVIX) offers leveraged exposure to VIX contracts; the note is linked to an index comprised of front month futures with a 200% leverage on the movements in volatility. TVIX is clearly a risky investment.  However, because it is an ETF, many unsophisticated investors may have confused it with the more traditional (and conservative) ETFs that have become so popular.

On March 22, 2012, TVIX lost 29.3% of its total share price as investors scrambled to sell off their positions. The following trading day saw losses that were even more severe, 29.8%, as the fund was then trading at $7.16 per share. The net losses of the two days (after closing at $14.43 on Wednesday) totaled just over 50%, a massive swing that left many with big losses in a matter of hours.

FINRA and the SEC are beginning to step up their efforts to regulate nontraditional ETFs and ETNs live TVIX ETF and to monitor the manner in which these products are marketed and sold to the investing public.

FINRA and the SEC published a joint investor alert in 2009 warning that leveraged and inverse ETFs are complicated investments that focus on meeting daily performance goals. The agencies said long-term performance is likely to be very different than the investment’s stated daily objectives, and recommended that investors discuss the products with an investment professional.

If you have suffered losses in the TVIX ETF, the securities attorneys of The White Law Group may be able to help.  For a free consultation, please call the firm at 312/238-9650.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.  The firm exclusively represents investors in FINRA arbitration claims against their brokerage firm or financial professional.

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

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