Our attorneys are investigating investor losses in iPath S&P GSCI Crude Oil Total Return Index ETN (stock ticker “OIL”) and VelocityShares 3x Long Crude Oil ETN (stock ticker “UWTI”).
OIL is a complex exchange-traded note (“ETN”) designed to provide exposure to the S&P GSCI Crude Oil Total Return Index (the “Index”). According to OIL’s issuer’s website, the ETN is riskier than ordinary unsecured debt securities and have no principal protection. The investment, according to the website involves significant risk, and investors could potentially lose their principal.
OIL peaked at just over $25.00 per share in the middle of 2014. Since that peak, it has dropped immensely in value. It currently trades at or around $6.00 per share. Barclays Capital is the issuer of OIL.
UWTI is another ETN. Its value has fluctuated wildly over the past five years. In 2012 UWTI reached a peak of just over $60.00 per unit. It dropped precipitously into 2013 and fluctuated between just over $20.00 per unit and just over $40.00 per unit.
In the middle of 2014, UWTI dropped from around $40.00 per unit to $3.50 per unit at the start of 2015. It toiled below $10.00 per unit for a majority of 2015. In 2016, UWTI began an upward spring that saw the ETN reach close to $40.00 per note. UWTI currently is trading around $25.00 per note, but it’s clear to see how volatile the ETN is.
Further, UWTI is heavily leveraged, leaving investors’ principal at risk like with OIL. Credit Suisse AG, the issuer of UWTI, delisted the ETN from the New York Stock Exchange in December 2016 and it currently trades on the OTC Markets.
Non-traditional and leveraged ETNS such as OIL and UWTI are often times unsuitable for investors, as they are technical investments that are high-risk. They are often times held onto for short periods of time and subject to wild swings in value, such as that exemplified in UWTI.
Some brokers fail to properly vet the securities and do not fully understand them. When a broker does not understand the investment and recommends a customer invest in it, that broker has unsuitably recommended the investment regardless of whether the investment produces losses or gains.
Our attorneys have represented and currently represent many aggrieved investors in an attempt to recover their losses through FINRA arbitration.
If you lost money investing in iPath S&P GSCI Crude Oil Total Return Index ETN (“OIL”) and VelocityShares 3x Long Crude Oil ETN (“UWTI”) and/or any other oil and gas private placements, publicly-traded drilling partnerships, partnership bonds, exchange-traded notes (“ETNS”) or other oil- and gas-related securities, you may be entitled to recover some of your investment losses.
For more information about the law firms, the lawyers, and the oil and gas investment practice area, please visit the oil and gas investment website at: www.oilgasfinraarbitration.com. You can also contact toll-free Mr. Silver at: (800) 975-4345 for a confidential, no-cost consultation on the potential for recovery of your investment losses. Our attorneys represent clients nationwide in securities cases to recover investment losses. No fee unless we obtain a recovery for you.