We are investigating the UBS E-TRACS 2x Monthly Leveraged Alerian MLP Index. This is a leveraged fund that was sold and marketed by UBS Financial Services as providing returns of two-times (2x) the performance of the Alerian MLP Index, the largest index of oil and gas energy partnerships. The UBS E-TRACs purported to offer all the upside and gains of investing in the Alerian MLP Index, with limited downside risk because of the expanding global demand for energy.
This investment was extremely risky and speculative due to its leverage and high correlation to oil prices which have historically been extremely volatile. Oil prices have always fluctuated widely and often unpredictably which is why speculators have flocked to trade them. The volatility of oil has wiped out many hedge funds and professional investors in the past, such as the Amaranth Advisors hedge funds which lost $6 billion in 2006.
This UBS E-TRACS fund was a high risk and speculative investment. No investor should have invested in the UBS E-TRACS fund if they had conservative or even moderate investment objectives. No retiree or other conservative investor who needed to protect their principal or earn income should have invested in the UBS E-TRACS.
If you suffered a loss from the UBS E-TRACS 2x Monthly Leveraged Alerian MLP Index, you may have the legal right to bring a claim for unsuitability, fraud or sales practice violations against the brokerage firm that sold it to you.