Stockbroker Law - Friday, February 16, 2018
VIX ETF’s Wreak Havoc on Small Investors

VIX ETF Investment Fraud

The market volatility of the first half of February of this year has seen small investors lose hundreds of millions of dollars in VIX ETF’s they should never have been invested in the first place.  These unsuitable VIX ETF’s and investments include:

VelocityShares Daily 2X VIX Short-Term ETN (TVIX)
ProShares Short VIX Short-Term Futures (SVXY)
iPath S&P 500 VIX Short-Term Futures ETN (VXX)
VelocityShares Daily Inverse VIX Short-Term ETN (XIV)
ProShares Ultra VIX Short-Term Futures (UVXY)
ProShares VIX Short-Term Futures (VIXY)
LJM Preservation and Growth Fund (LJMIX)
Nomura Next Notes S&P 500 VIX Short-Term Futures Inverse Daily Excess Return Index ETN

Curiously, last year, FINRA reminded member firms of its obligation to protect small investors from potential catastrophic losses associated with VIX volatility-linked Exchange Traded Products .  Unfortunately, many financial advisors failed to heed this guidance.

It has been widely known that VIX volatility-linked Exchange Traded Products will surely lose considerable value over time.  It has also been well known that VIX ETF’s are unsuitable for small investors.  Further, they are clearly not designed to be purchased and held in the same manner as long-term investments in common stocks or balanced mutual funds.  

Have you sustained unnecessary losses due to the improper purchase of VIX ETF funds in your retirement portfolio?  We offer a free initial consultation to individual investors who have sustained unnecessary losses in unsuitable VIX ETF products.  For an appointment contact the Law Offices of Timothy J. O’Connor at (518) 426-7700.


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