The securities and investment fraud law firm, Fitapelli Kurta, is interested in hearing from investors who have complaints regarding UBS Exchange Traded Access Securities (ETRACS) exchange-traded notes (ETNs).
UBS has marketed its ETRACS ETNs to clients as a reliable source of returns, despite the fact that its customers may not fully comprehend the risks associated with the investment. In particular, investors may not be aware that when interest credited to their accounts is based on more volatile securities, it has more complicated considerations than a simple interest rate.
UBS ETRACS ETNs are able to produce greater returns by using embedded derivatives to track often-volatile securities, indices, commodities, or currencies. They do not come with any principal protections. They may have significant fees and commissions, and it has been alleged that UBS has failed to properly explain their inherent risks.
ETRACS ETNs track numerous sectors that UBS investors may not typically be able to access. Several have these have led to noteworthy losses for UBS clients: commodity baskets, energy pipelines, oil prices, are a few such investments.
Some UBS ETRACS ETNs are leveraged as much as 200%. This means they amplify the returns of their underlying assets: for instance, if the underlying returns 1% on a given day, the ETRACS ETN will theoretically return 2%. The disadvantage of this is that just as they amplify gains, they can also amplify losses.
UBS underwrites and manages billions of dollars’ worth of ETRACS market-linked notes, including:
- UBS ETRACS Alerian MLP Index ETN (NYSE Arca: AMU)
- UBS ETRACS 2X Monthly Leveraged S&P MLP Index ETN (NYSE Arca: MLPV)
- UBS ETRACS Alerian MLP Infrastructure Index ETN (NYSE Arca: MLPI)
- UBS ETRACS 2X Monthly Leveraged Long Alerian MLP Infrastructure Index ETN (NYSE Arca: MLPL)
- UBS ETRACS CMCI Energy Total Return ETN (NYSE Arca: UBN)
- UBS ETRACS CMCI Total Return ETN (NYSE Arca: UCI)
- UBS ETRACS Bloomberg Commodity Index Total Return (NYSE Arca: DJCI)
If you have lost money investing in UBS Exchange Traded Access Securities (ETRACS), you may be entitled to recover your losses. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on a contingency basis: Fitapelli Kurta only gets paid if and when you collect funds. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.