Investigating Potential Claims Involving PowerShares S&P SmallCap Energy ETF (PSCE)
Have you suffered losses investing in PowerShares S&P SmallCap Energy ETF (PSCE)? 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.
According to Investment News, despite the fact that Standard & Poor’s 500 stock index rose 9.3% in the first half of this year, and the international MSCI EAFE index jumped 11.8%, some funds and ETFs managed to post losses.
One example is Energy ETF PowerShares S&P SmallCap Energy ETF (PSCE), which dropped 37% in the first half of the year. West Texas intermediate crude dropped from $106 a barrel in June 2014 to $53.75 at the start of 2017. Unfortunately for investors, oil continued to fall to $46.02 a barrel by the end of June.
Risks of Energy ETFs
Energy ETFs offer exposure to the Energy Sector by linking to an index of commodity related equities that tracks either the overall Energy Sector, industries within the Energy Sector, or individual energy commodities, such as crude oil, gasoline, heating oil, natural gas, or others.
While ETFs are often sold as conservative ways to track the market, or a particular sector of the market, this is an over-simplification of the complicated trading strategies necessary to accomplish this. Additionally, tracking a particular sector of the market is not necessarily a conservative trading strategy (depending on the concentration level of the investment relative to the other assets in your account and the particular sector).
Financial professionals and brokerage firms that sell such products are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success. They must 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 your financial advisor recommended an Energy Sector ETF such as PowerShares S&P SmallCap Energy ETF (PSCE), and you suffered substantial losses, you may have a claim to recover your losses through FINRA arbitration.
For a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.
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 http://www.whitesecuritieslaw.com.