January 17, 2017 Comments (0) Current Investigations

C-Tracks Citi Volatility Index TR ETN Investment Losses

(Last Updated On: January 17, 2017)

Have you suffered losses investing in C-Tracks Citi Volatility Index TR ETN? If so, The White Law Group may be able to help you recovery your losses by filing a FINRA arbitration claim against the brokerage firm that sold you the investment.

According to RCM Investments website, C-Tracks Citi Volatility Index TR ETN is one of top 10 worst performing ETFs, down 82.10% in a twelve month period.

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. The fund has apparently been struggling since 2012.

Unfortunately for investors in May 2016, Citigroup Inc. early redeemed its C-Tracks Exchange-Traded Notes Based on the Citi Volatility Index Total Return Due November 12, 2020.The last day of trading for CVOL was May 23, 2016.

According to the prospectus, the ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks. They are designed to achieve their stated investment objectives on a daily basis, but their performance over different periods of time can differ significantly from their stated daily objectives. The ETNs are riskier than securities that have intermediate- or long-term investment objectives, and may not be suitable for investors who plan to hold them for a period other than one day.

C-Tracks Citi Volatility Index TR ETN is a short term investment and should be traded as such.  Unfortunately, though, some advisors that recommended the C-Tracks Citi Volatility Index TR ETN fund failed to understand its short term nature and recommended that investors buy and hold the fund.

The White Law Group continues to investigate the liability brokerage firms may have for improperly recommending C-Tracks Citi Volatility Index TR ETN.  Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of that particular investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income.  Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim.

If you suffered losses in C-Tracks Citi Volatility Index TR ETN fund 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 fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.  The firm represents investors in FINRA arbitration claims throughout the country.  For more information on the firm, visit http://www.whitesecuritieslaw.com.