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Written by 7:41 pm Blog, Current Investigations

Securities Investigation: IShares 25+ Year Treasury STRIPS Bd ETF (GOVZ)

IShares 25+ Year Treasury STRIPS Bd ETF (GOVZ), featured by top securities fraud attorneys, the White Law Group

IShares 25+ Year Treasury STRIPS Bd ETF (GOVZ) is down –41.77% 

Have you suffered investment losses in IShares 25+ Year Treasury STRIPS Bd ETF (GOVZ) at the advice of your financial advisor? If so, the securities attorneys at the White Law Group may be able to help you. 

IShares 25+ Year Treasury STRIPS Bd ETF (GOVZ), an exchange traded fund managed by BlackRock Fund Advisors, focuses on growth and income.  

According to the Wall Street Journal, this is the worst bond market since 1842. Why? Because when interest rates go up, bond prices go down.  To make matters worse, rates started at such low levels and the increase has been dramatic. The federal reserve increased the interest rate again in September to 3% and 3.25%. (In May it was 0.75% to 1.00%). Rates were raised by 0.5% on May 4, 2022 and more increases are anticipated in the months ahead. 

More problematic are long term duration bond funds because the longer the maturity of the bond the greater the decrease. Many bond investors are unaware of this risk and assume that their bond investments are their “safe” investments. 

Unfortunately, since GOVZ invests in long-duration bonds, it is exposed to credit risk associated with an increase in interest rates. According to Morningstar, IShares 25+ Year Treasury STRIPS Bd ETF (GOVZ) is currently down –41.77% YTD. 

Potential Lawsuits to Recover Financial Losses 

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended bond funds to investors.  

Before recommending a bond investment, a financial advisor, at minimum, is required to disclose: (1) the bond’s current price, (2) the commissions or markups that must be paid to acquire the bond, (3) an explanation of the call provisions for the bond (if applicable), (4) the current yield, the yield to maturity, and the yield to call the bond, (5) the amount and timing of the bond payments, and, most importantly, (6) the risk of default or devaluation of that particular bond’s value. To learn more see 

If you have suffered investment losses in IShares 25+ Year Treasury STRIPS Bd ETF (GOVZ), the securities attorneys at the White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment. 

For a free consultation with one of our securities fraud attorneys please call The White Law Group at 888-637-5510. 

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

 For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com. To learn more, see: 10 Worst Financial Advisors in America according to Think Advisor 

 

 

Tags: , , , , Last modified: October 12, 2022