The Securities Arbitration Firm of Menzer & Hill, P.A. (www.suemyadvisor.com)
announced today that it is investigating the sales practices of
brokerage firms that solicited investors to buy leveraged and inversed
Exchanged-Traded Funds (ETFs). Many brokerage firms, through their
financial advisors, are soliciting purchases in these securities as
investments, with holding periods longer than one day, while others are
recommending option strategies on the underlying ETFs. The Financial
Industry Regulatory Authority (FINRA), stated in a Regulatory Notice,
sent to brokerage firms June 2009, that leveraged and inverse ETFs are
highly complex financial instruments and are typically not suitable
for retail investors who plan to hold them for more than one trading
[day], particularly in volatile markets. Brokerage firms that failed to
adhere to suitability requirements could be held liable to investors
that sustained losses in solicited purchases of leveraged and inverse
ETFs as a result.
“are typically not suitable
for retail investors who plan to hold them for more than one trading
[day], particularly in volatile markets.”
Investors that have purchased leveraged or inverse ETFs through a
brokerage account or managed account offered by Merrill Lynch, a
subsidiary of Bank of America (NYSE:BAC), Morgan Stanley Smith Barney
(NYSE:MS), Wells Fargo Advisors (NYSE:WFC), Ameriprise Financial
(NYSE:AMP), UBS (NYSE:UBS), LPL Financial, Raymond James (NYSE:RJF),
Edward Jones, or other brokerage firms and have sustained losses should
contact the attorneys at the Securities Arbitration Firm of Menzer &
Hill, P.A. to determine if they have a claim for a recovery of losses.
Leveraged and inverse ETFs can be volatile and investors may have
realized or unrealized losses in the following ETFs year to date,
including but not limited to:
DRV down 63% (NYSEArca: DRV);
TMV down 46% (NYSEArca: TMV);
VXX down 44% (NYSEArca: VXX);
SRS down 43% (NYSEArca: SRS);
ZSL down 42% (NYSEArca: ZSL);
GAZ down 38% (NYSEArca: GAZ);
TZA down 36% (NYSEArca: TZA);
UNG down 35% (NYSEArca: UNG);
TBT down 34% (NYSEArca: TBT);
FAZ down 29% (NYSEArca: FAZ); and
UCO down 28% (NYSEArca: UCO).
For a free case evaluation or to discuss any other investment losses,
please contact the Securities Arbitration Firm of Menzer & Hill, P.A.,
at 888-923-9223, or visit us on the web at www.suemyadvisor.com.

Source: Business Wire