Concerned about Investment Losses in iPath S&P 500 VIX Short-term Futures ETN (VXX)?
Have you suffered losses investing in iPath S&P 500 VIX Short-term Futures ETN (VXX)? If so, the securities attorneys of The White Law Group may be able to help you recover your losses in a FINRA arbitration claim against the brokerage firm that recommended the investment.
iPath S&P 500 VIX Short-term Futures ETN (VXX) is an exchange-traded note issued in the USA. The Notes will provide investors with a cash payment at the scheduled maturity or early redemption, based on the performance of its underlying index, the S&P VIX Short-term Futures Index.
According to reports, investors use the fund as a hedge against sudden declines. The ETN has only disappointed over the last five years. It has lost an average 59.2% a year, according to Morningstar (MORN). The fund has lost money every year, but managed to shed 68.3% last year. Incredibly, the fund has $1.1 billion in assets.
The fund’s terrible performance can be attributed to the stock market’s relative tranquility, at least as measured by S&P 500 short-term volatility futures. Another reason is that the index continually rolls into long futures contracts, which often are higher than the price of expiring ones. They’re buying high and selling low.
Recovery of Investment Losses
The White Law Group is investigating the liability brokerage firms may have for improperly recommending the iPath S&P 500 VIX Short-term Futures ETN (VXX). Brokerage firms are required to perform adequate due diligence on any investment they recommend. They must 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 iPath S&P 500 VIX Short-term Futures ETN (VXX) 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.