Written by 3:32 pm Blog, Securities Fraud Articles

Investigation into Direxion ETF Bearish Fund Investment Losses

Have you suffered losses investing in Direxion ETF Bearish Fund (FAZ) ? If so, the securities attorneys of The White Law Group may be able to help.

Exchange-traded funds (ETF) are registered investment companies whose shares comprise of a portfolio of securities, often described as a “basket.” They are designed to mirror the performance of the underlying index such as the S&P. ETF’s trade just like a stock and their value can fluctuate throughout the day.

Traditional ETF’s are often compared to mutual funds and have drawn in retail investors. In some cases traditional ETF’s may be suitable for everyday investors seeking long term returns, however the same can not be said of leveraged ETS such as Direxion ETF Bearish Fund. Leveraged ETF’s are considerably more complex and carry a far greater degree of risk.  In addition they are not designed to be held for an extended length of time.

Leveraged  ETF’s often use a number of investment strategies, such as swaps, futures contracts and other derivative instruments, to meet their objectives. Unfortunately the complexities associated with these product, are not only misunderstood by many investors, but the brokers that sell them.

Brokerage firms that sell such products are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives. Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.

If you suffered losses investing in Direxion ETF Bearish Fund and would like a free consultation with a securities attorney, please call The White Law Group at(312)238-9650.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.

Tags: , , , , , , , , Last modified: September 8, 2015