Recover Losses in Barclay's VXX
If you lost money on VXX, you may have a claim against your broker or his company (known as a broker-dealer) to recover your losses. VXX has become a very popular investment for brokers who think they can use it to "hedge" the market. However, it is incredibly complex, highly risky, typically misunderstood, and generally unsuitable for most retail investors (ordinary people saving for retirement). VXX is virtually guaranteed to lose all of its value over time, so it is especially risky for any investor to buy and hold it for longer than a week. If you lost money in VXX, contact us today to discuss a claim. We are currently prosecuting claims on behalf of numerous individuals who have lost money on VXX.
“[VXX] is a complicated and risky investment which is not suitable for unsophisticated investors [and is] rarely if ever suitable as a long-term holding.”Financial Industry Regulatory Authority (FINRA)
VXX is an unsecured debt instrument that is designed to track the movement of futures on an index that measures overall market volatility. Since its inception, VXX has averaged a yearly negative return of negative 58 percent. Because it tracks futures of a volatility measurement, VXX is itself an inherently incredibly volatile and risky investment vehicle. It is designed to be used only as a hedge by sophisticated, institutional investors, and is all but guaranteed to lose money if held for an extended duration.
As members of FINRA, brokerage firms (aka, broker-dealers) and their associated persons (aka, brokers) have an obligation to have reasonable grounds for believing that a recommendation to buy, sell, or hold a security is suitable for an investor when making the recommendation. This includes ensuring that the broker-dealer has done its due diligence to understand the product, train its brokers on the product, and determined that given the risks and rewards of the product, it is suitable for some investors. After conducting a suitability analysis, the broker-dealer must also determine if the investment being recommended meets with the specific investor’s stated investment objectives and risk profile. For almost all investors, the complexity and risks of investing in VXX far outweigh any potential gain. VXX should not be sold to almost any members of the public, and it especially should not be held on to for a period of more than a few days. Few brokers properly understand VXX or are adequately trained in selling it. If you were sold VXX and suffered losses, you may have a claim. The Securities Lawyers practice group at Halling & Cayo, S.C. can help. We take cases all over the country, and we only get paid if we win. Contact us to set up a meeting to review your case.
“At The Securities Lawyers, you get hands-on involvement from a partner level attorney. If I'm on your case, there will be associates and paralegals assisting, but I will be the one trying your case, negotiating settlements, and mediating your case.” Sean M. Sweeney