February 19, 2016 Comments (0) Blog

Investor Alert- VelocityShares Daily 3x Long Crude ETN

(Last Updated On: February 19, 2016)

Have you suffered losses investing in the VelocityShares Daily 3x Long Crude ETN?  If so, the securities attorneys of The White Law Group may be able to help you recover those losses through a FINRA arbitration claim against the brokerage firm that recommended the investment.

VelocityShares Daily 3x Long Crude ETN is an exchange-traded note issued in the USA by Credit Suisse AG (Nassau Branch). The Note will provide investors with a cash payment at the scheduled maturity or early redemption based on the performance of the underlying index, S&P GSCI Crude Oil Index ER.

According to Bloomberg, the VelocityShares Daily 3x Long Crude ETN is down over 61% year to date and over 95% in the past 12 months.

The problem with the VelocityShares Daily 3x Long Crude ETN is that it is extremely risky and easily misunderstood.  The first thing you should know is that a leveraged exchange-traded note (ETN), like the VelocityShares Daily 3x Long Crude ETN, uses financial derivatives and debt to amplify the returns of an underlying index. These are high-risk trades that should be seen as just that: trades. They should not be approached as investments.

Also, this is not an investment to be held long term.  So even if you or your financial advisor thought that the price of oil was going to rebound or go up, this is still not a vehicle to bet that play long term.  It is a daily trade (completely inappropriate for most investors who are long term “buy and hold” investors).

The White Law Group is investigating the liability that brokerage firms may have for improperly recommending the VelocityShares Daily 3x Long Crude ETN.

Brokerage firms are required to perform adequate due diligence on the investments they recommend 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 the VelocityShares Daily 3x Long Crude ETN and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free consultation.

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 and its representation of investors, visit www.WhiteSecuritiesLaw.com.