Securities Investigation – ProShares Short S&P500 (SH)
Have you suffered losses investing in ProShares Short S&P500 (SH)? If so, the securities attorneys at 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, ProShares Short S&P500 seeks daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the daily performance of the S&P 500®.
This short ProShares ETF seeks a return that is -1x the return of its underlying benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, ProShares’ returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period.
These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks. Investors should monitor their holdings as frequently as daily.
Unfortunately for investors, ProShares Short S&P500 (SH) is down -22% over the last year. No surprise it was one of the worst performing funds in 2019, according to Financial Planning.
Investing in Exchange-traded Funds (ETFs)
The White Law Group is investigating the liability that FINRA-registered brokerage firms may have for unsuitably recommending complex and risky ETFs like SH to investors.
An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day.
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.
Broker dealers 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 investment, particularly one as volatile as the ProShares Short S&P500 (SH) 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 offices 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.