Leveraged “ETFs” (Exchange Traded Funds)
Exchange Traded Funds (ETFs) were developed to create a more liquid market in sector funds. However, leveraged ETFs are designed to be tactical trading instruments, specifically not for “buy and hold” investors. Because of strict leverage requirements, even if you are correct about the direction of a market sector or the underlying investment, the complexity and leverage of the ETF can completely destroy the performance. As a result, leveraged ETFs make up only a very small percentage of the ETF marketplace.Did You Suffer Losses Due to Leveraged ETF’s? Recover Your Losses!
Because of the misuse of ETFs, FINRA issued a Regulatory Notice which warns investors that because inverse and leveraged ETFs are typically reset every day, they are unsuitable for retail investors who plan to hold them for more than one trading session. If your broker or advisor has sold you any leveraged ETFs or Inverse ETFs, or purchased any leveraged ETFs or Inverse ETFs in your accounts, and you have lost money on these investments, you may be entitled to recover these losses.
To help us evaluate your chances for a successful recovery for a “Leveraged Exchange Traded Funds” claim we offer a free and confidential claim evaluation.