Securities Investigation – iPath B S&P 500 VIX S/T Futs ETN (VXX)
Have you suffered losses investing in iPath B S&P 500 VIX S/T Futs ETN (VXX)? 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 its website, VXX tracks an index with exposure to futures contracts on the CBOE Volatility Index with average 1-month maturity. Exposure resets daily.
VXX is among the largest and most liquid volatility ETPs, and is one of a handful that offer short-term VIX futures exposure. Unfortunately for investors, iPath B S&P 500 VIX S/T Futs ETN is down -65% over the last year. No surprise it was one of the worst performing funds in 2019, according to Financial Planning.
Investing in Exchange-traded Notes (ETNs)
The White Law Group continues to investigate the liability that brokerage firms may have for recommending complex and risky ETNs like VXX to investors.
An exchange-traded note (ETN) is a senior, unsecured, unsubordinated debt security issued by an underwriting bank. Similar to other debt securities, ETNs have a maturity date and are backed only by the credit of the issuer. ETNs are designed to provide investors access to the returns of various market benchmarks.
Many of these investments are packaged as a way for investors to avoid the volatility of the market or capture growth in a particular sector. In reality, these structured investments are just ways for the industry to increase revenues generated from the creation, sale, and management of these products.
Financial professionals and brokerage firms have a duty to recommend only investments that are appropriate for the client based on the client’s age, investment experience, net worth, and investment objectives.
If your financial advisor has over-concentrated your assets in any sector or investment, particularly one as volatile as the iPath B S&P 500 VIX S/T Futs ETN (VXX) and you suffered substantial losses, you may have a claim to recover your losses through FINRA arbitration.
For a free consultation, please call The White Law Group’s Chicago office at 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.