Suing To Recover Direxion Energy Bull 3X ETF (ERX) Investment Losses

Investors who were recommended the Direxion Energy Bull 3X ETF (ERX) by their financial advisor may have an actionable claim to recover those investment losses. Financial advisers under FINRA Conduct Rules have an obligation to recommend suitable, appropriate investments. The suitability of the transaction is governed by factors like the clients, age, net worth, actual investment objectives, future earnings potential and other related topics. Brokers are also obligated to perform due diligence on various investments before recommending them. Unfortunately, many of the financial advisers who recommended the Direxion Energy Bull 3X ETF (ERX) made a grossly unsuitable and inappropriate recommendation. The investment sought results of 300% of the performance of the Energy Select Sector Index. The fund creates long positions by investing at least 80% of its assets in the securities that comprise the Energy Select Sector Index and/or financial instruments that provide leveraged and unleveraged exposure to the index. It is therefore non-diversified. These financial instruments include: futures contracts; options on securities, indices and futures contracts; equity caps, floors and collars; swap agreements; forward contracts; short positions; reverse repurchase agreements; exchange-traded funds; and other financial instruments. This was therefore a highly volatile security that simply wasn’t appropriate or suitable for most investors. If you’d like a free review by an attorney as to whether ERX losses can be recovered through a contingency fee FINRA arbitration action or lawsuit, please call us in Chicago at 312.332.4200.

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