UBS To Offer Redemptions to ETRACS ETN Investors After Coronavirus-Spurred Crash
If you are an investor who was sold UBS ETRACS exchange-traded notes (ETNs), please contact our investor lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) today. ETRACS ETNs are complex and risky investments and they are not suitable for every investor.
UBS recently announced that it was offering mandatory redemptions for certain ETRACS ETNs while freezing trading of others after the market crashes spurred by the novel coronavirus (COVID-19) pandemic. UBS ETRACS ETN investors have lost a lot of money.
Which ETRACS ETNs Have Been Impacted By The Recent Crash?
Currently, sales have been suspended for the following ETNs sold by UBS – VelocitySharesTM 1X Daily Inverse VSTOXX Futures ETN and Proshares Daily 3X Long Crude ETN linked to the Bloomberg WTI Crude Oil Subindex ER. Whereas, the exchange-traded notes in which mandatory redemptions will be applied to by UBS involve the following list:
- Monthly Pay 2x Leveraged Dow Jones Select Dividend Index ETN
- ETRACS ProShares Daily 3x Inverse Crude ETN linked to the Bloomberg WTI Crude Oil Subindex ER
- VelocityShares 1x Long VSTOXX Futures ETN
- VelocityShare 1x Daily Inverse VSTOXX Futures ETN
- Monthly Pay 2x Leveraged MSCI US REIT Index
- ETRACS Monthly Pay 2x Leveraged Diversified High Income ETN
- ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN
- ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN
- Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN
- ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN
- 2×Leveraged Long ETRACS Linked to the Wells Fargo® Business Development Company Index
- 2×Leveraged Long ETRACS Wells Fargo® Business Development Company Index ETN Series B
- ETRACS 2xMonthly Leveraged S&P MLP Index ETN Series B
- ETRACS Monthly Reset 2xLeveraged ISE Exclusively Homebuilders
- ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN
- ETRACS 2xMonthly Leveraged Alerian MLP Infrastructure Index ETN Series B
These ETNs are unsecured, unsubordinated debt securities. They are leveraged and high-risk investments and are meant to track a specific market index’s total returns. They are definitely unsuitable for retail investors and senior investors, as well as anyone else who cannot take on too much risk.
Exchange-Traded Notes Investor Fraud Claims
Unfortunately, there is growing concern that there are stockbrokers who did not properly inform investors of the risks involved in UBS ETRACS ETNs or they recommended them to customers for whom they were unsuitable.
Please contact our exchange-traded notes fraud attorneys at SSEK Law Firm if you have sustained losses from these investments so that we can help you explore your legal options. We offer a free, no-obligation case consultation.