Losses On UBS ETRACS ETNs?

Losses By Investing In UBS ETRACS ETNs Because Of Your Broker Or Adviser?

Soreide Law Group is reviewing investor claims against brokers or advisers who recommended UBS ETRACS ETNs. These investments are senior, unsecured and unsubordinated securities which are meant to track the return of a specific market index minus fees. Namely, some of these investments—including MLPQ, MLPB and MLPI—have seen drastic declines in value. Here's more:

MLPQ Goes Through Mandatory Redemption

The UBS ETRACS 2xMonthly Leveraged Alerian MLP Infrastructure Index ETN SeriesB (NYSEArca: MLPQ), which was issued February 8, 2016 and which was set to mature February 12, 2046, went through a mandatory redemption. The announcement, made by UBS Investment Bank on March 10, 2020, comes after the indicative value of MLPQ dropped under $5.00. MLPQ closed at $3.70 as of March 18, 2020 – its last day of trading. Its 52 week range at that time was $2.89 to $30.89. Its 1-year daily total return was -85.10% and its 3-year daily total return was -51.92%.

MLPB, MLPI Experience Drastic Declines In Price

Also, UBS ETRACS Alerian MLP Infrastructure Index ETN Series B (NYSEArca: MLPB) closed at $10.40 as of April 24, 2020. It has a -45.37% YTD daily total return. Notably, its 1-year daily total return is -50.42% and its 3-year daily total return stands at -23.58%. UBS ETRACS Alerian MLP Infrastructure Index ETN (NYSEArca: MLPI) closed at $10.40 as of April 24, 2020. It also has a YTD daily total return of -45.37%, 1-year daily total return of -50.42% and 3-year daily total return of -23.58%.

Some Brokers and Advisers May Have Improperly Recommended ETRACS ETNs

Some brokers and advisers may have provided investors with bad advice about ETNs such as UBS ETRACS ETNs. Although ETNs allow investors to earn a profit when the index is higher at its maturity, they are not principal protected and do not make interest payments like bonds do. Also, ETNs contain risks that relate to liquidity and tracking an index, and risks with the issuer including default, use of options to achieve returns, and mandatory redemptions such as the case with MLPQ.
Significantly, brokers and advisers are supposed to only recommend investments after taking into account the client’s suitability information such as the client’s risk tolerance, age and objectives. Unfortunately, some brokers and advisers do not consider the client’s risk tolerance before making recommendations to the client. Some omit or downplay risks while touting the possibility of high returns to induce clients’ investment purchases. Investors who purchased unsuitable or misrepresented ETNs from their broker or adviser may be able to recover their losses.

Losses From Investing In MLPQ, MLPB or MLPI?

Have you sustained losses by investing in UBS ETRACS ETNs because of your broker or adviser? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities firms and investment advisories along with their representatives.