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The Law Offices of Robert Wayne Pearce, P.A. is currently investigating and representing investors against UBS Financial Services, Inc. and other FINRA-registered brokerage firms and financial advisors who offered and sold UBS ETRAC Exchange Traded Notes (ETNs). If you were unaware of the risks of these investments when you bought them, you certainly know now, unfortunately, because you have probably lost most if not all of the money you invested. The fact is your stockbroker or financial advisor had a duty to explain the nature, mechanics, and all of the risks associated with UBS ETRAC Exchange Traded Notes before you were sold the investment.  Further, your stockbroker had a duty to make sure the investments were suitable before they were recommended in light of your risk tolerance, financial objectives, and financial condition. Unfortunately, many stockbrokers and financial advisors who didn’t understand the nature or risks involved sold these investments to investors with conservative and moderate risk tolerance who were simply seeking to enhance their income for retirement. These ETNs were unsuitable investments for investors with that kind of profile. The UBS ETRAC Exchange Traded Notes, particularly the ETNs with a 2X in the name were leveraged 2:1, were very high-risk, speculative investments.

If they had understood the inherent risks associated with UBS ETRAC Exchange Traded Notes, most investors never would have made the investment in market-linked UBS securities such as:

  • ETRACS Monthly Pay 2xLeveraged U.S. High Dividend Low Volatility ETN (HDLV)
  • ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN (SMHD)
  • ETRACS Monthly Pay 2xLeveraged Diversified High Income ETN (DVHL)
  • ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN (CEFL)
  • ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN (CEFZ)
  • ETRACS 2xLeveraged Long Wells Fargo Business Development Company Index ETN (BDCL)
  • ETRACS 2xLeveraged Long Wells Fargo Business Development Company ETN (LBDC)
  • ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (MORL)
  • ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (MRRL)
  • ETRACS Monthly Pay 2xLeveraged MSCI US REIT INDEX ETN (LRET)
  • ETRACS 2x Monthly Leveraged Alerian MLP Infrastructure Index ETN (MLPQ)
  • ETRACS Monthly Reset 2xLeveraged ISE Exclusively Homebuilders ETN (HOML)
  • ETRACS 2xMonthly Leveraged S&P MLP Index ETN Series B (MLPZ)
  • ETRACS Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN (LMLP)
  • ETRACS ProShares Daily 3x Inverse Crude ETN linked to the Bloomberg WTI Crude Oil Subindex (WTID)

These UBS ETRAC ETNs are unsecured debt securities which are leveraged and high-risk investments. They are extremely unsuitable for retail investors, senior investors, and anyone else who cannot take on too much risk.

We have discovered through many investors’ phone calls that stockbrokers often fail to disclose one of the biggest risks associated these investments – the the fact that UBS could order mandatory redemptions of the exchange traded notes when the value is at the lowest point! In cases that involve such redemptions, investors lost the opportunity to ride out the market storm and, hopefully, recover their losses when market conditions improved.

If you invested in any of the UBS ETRAC exchange traded notes, you may be able to recover your losses through a FINRA arbitration proceeding. Mr. Pearce has over 40 years of experience with structured product disputes and recovering money for investors.   If Attorney Pearce accepts your case, there will be no attorney’s fees or arbitration expenses unless we recover funds for you in a settlement or through an arbitration award. Call 1-800-SEC-ATTY (1-800-732-2889) or contact us now to get your questions answered regarding your UBS ETRAC investments.

The most important of investors’ rights is the right to be informed!  This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida.  For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues.  The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally!  Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

Author Photo

Robert Wayne Pearce

Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $125 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.

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