VelocityShares 3x Long Crude Oil ETN (UWTI)
52 Week Range: 11.70 - 140.90
In June of 2009, the Financial Industry Regulatory Authority (FINRA) released FINRA Notice to Members 09-31 concerning Non-Traditional ETFs. The Notice states that, “inverse and leveraged ETFs that are reset daily are typically unsuitable for retail investors who plan to hold them for longer than one trading session.”
UWTI resets daily and is a volatile investment suitable for day traders only. No one should hold UWTI as a long position. A leveraged exchange-traded note, also known as an ETN, uses financial derivatives and debt to increase the returns of an underlying index. These are high-risk trades. They should never be approached as investments. With the UWTI depreciation, these types of trades should be avoided completely if you want to maintain your capital. A 3x leveraged ETN would only need to drop 33.4% in one day to go to zero. With all of the volatility in crude oil market lately, it may not be probable, but it could be possible.
If UWTI falls below 15% of the previous day's closing indicative value, UWTI would be subject to acceleration. This acceleration would liquidate the fund, leaving investors with only a small portions of their initial investments.
Any 3x leveraged ETN is not meant as a buy-and-hold investment for an investor with a conservative portfolio with long-term or retirement goals. These are trading vehicles meant for short term trading by sophisticated investors. Investing in these types of funds requires constant monitoring.
If your broker or financial advisor recommended VelocityShares 3x Long Crude Oil ETN (UWTI) or other high-risk non-traditional ETNs, for your otherwise conservative portfolio, call the Soreide Law Group for a no-cost consultation with a lawyer regarding the possibility of recovering your investment losses at: 888-760-6552.
Soreide Law Group represents clients nationwide before FINRA and operates on a contingency fee.
Soreide Law Group is investigating potential investor claims involving Cambridge Investment Research following a FINRA disciplinary action concerning Unit Investment Trust (UIT) recommendations. In April 2026, FINRA censured Cambridge Investment Research after finding supervisory deficiencies involving certain UIT recommendations made to retail clients. Investors who incurred excessive fees, unnecessary costs, or other damages associated with […]
Soreide Law Group is investigating potential investor claims involving Infinity Financial Services after FINRA sanctioned the firm for supervisory failures involving deferred variable annuity exchanges and recommendations. Investors who incurred surrender charges or other losses in connection with variable annuity transactions recommended through Infinity should review the allegations that led to FINRA's disciplinary action against […]
Soreide Law Group is investigating potential investor claims involving losses in NextGenTech Investments LLC, a private fund managed by Sestante Capital LLC that purported to provide investors with economic exposure to shares of private companies, including Anduril Industries. Recent criminal proceedings involving Sestante Capital's manager have raised significant concerns regarding the offering, the representations made […]
Phone:
Fax: 1-954-760-6553
Email: info@securitieslawyer.com