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Written by 3:35 pm Blog, Securities Fraud Articles

Investigation into ProsShares Ultrashort S&P 500 Investment Losses

Have you suffered investment losses in ProsShares Ultrashort S&P 500 (SDS)? If so, the securities attorneys of The White Law Group may be able to help.

The White Law Group is currently investigating the liability that brokerage firms may have for recommending this complicated and high risk products.

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.

Inverse or leveraged ETFs, like ProsShares Ultrashort S&P 500, seek a daily investment results that corresponds to twice (200%) or three times (300%) the inverse of the daily performance of the S&P 500. When the market is up investors face significant losses on their investment.

These types of 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 ProsShares Ultrashort S&P 500 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