The securities and investment fraud law firm Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments in ETRACS Wells Fargo MLP Ex-Energy exchange-traded notes (ETNs).
ETRACS Wells Fargo MLP Ex-Energy ETN (NYSE: FMLP) is an exchange-traded note (ETN) linked to the performance of the Wells Fargo Master Limited Partnership Ex-Energy Index. It pays a variable monthly coupon connected to cash distributions on index constitutions, “if any,” minus investor fees. The index is a “modified market capitalization-weighted index of master limited partnerships (MLPs) that do not have an energy focus and that have a market capitalization of at least $100 million at the time of inclusion,” according to UBS. According to Bloomberg, FMLP has declined in value by more than 21% over the last year.
Exchange traded notes (ETNs), like ETRACS Wells Fargo MLP Ex-Energy ETN, are unsecured, unsubordinated debt securities issued by an underwriting bank. They track the performance of a particular market, but unlike exchange traded funds (ETFs), they are structured products issued as senior debt notes and do not represent an ownership stake in the markets they track.
ETNs have a maturity date backed by the issuer. When an ETN matures, the investor receives a cash payment — minus investor fees — commensurate to the performance of the ETN’s corresponding index. Investors can liquidate an ETN prior to its maturity date by trading it on an exchange or by redeeming a block of securities to the underwriting bank. It is important to note that ETNs do not come with assurance of returns, or even assurances that investors will regain their principal. As such these can be particularly risky investments. Investors should seek a complete understanding of any investment from their broker or investment adviser, to ensure the product is suitable. Investment professionals who recommend unsuitable investments may be subject to disciplinary action by FINRA or the Securities and Exchange Commission
If you or someone you know has lost money investing in ETRACS Wells Fargo MLP Ex-Energy exchange-traded notes, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: Fitapelli Kurta only receives payment if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.