September 8, 2015 Comments (0) Blog, Securities Fraud

Investigation into Powershares Gold Double Long ETF

(Last Updated On: September 8, 2015)

Have you suffered losses investing in Powershares Gold Double Long ETF (DGP)? If so, the securities attorneys of The White Law Group may be able to help.

Exchange-traded funds (ETF) are registered investment companies whose shares comprise of a portfolio of securities, often described as a “basket.” They are designed to mirror the performance of the underlying index such as the S&P. ETF’s trade just like a stock and their value can fluctuate throughout the day.

As the name implies, Powershares Gold Double Long ETF (DGP), tracks changes in the market value of certain gold futures contracts at double the exposure. When the price of gold drops, investors are down double.

ETFs are often marketed as conservative ways to track the market, or a particular sector of the market. Unfortunately, this is an over-simplification that misleads many investors. Certain ETFs can be extremely complex and risky and are better suited for wealthy, sophisticated retail investors or institutional investors.

Brokerage firms that sell such products are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives. Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.

If you suffered losses investing in Powershares Gold Double Long ETF and would like a free consultation with a securities attorney, please call The White Law Group at (312)238-9650.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

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