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Stanley, Mandel & Iola, L.L.P., and Wolf Haldenstein Adler Freeman & Herz LLP Undertake ETF Investigation.

NEW YORK -- The law firms of Stanley, Mandel & Iola, L.L.P., and Wolf Haldenstein Adler Freeman & Herz LLP are investigating potential claims on behalf of retail customers who purchased leveraged exchange-traded funds (ETFs) and leveraged inverse ETFs and held them in their brokerage accounts for longer than one day. ETFs are securities whose price tracks the performance of an underlying index, sector, or economy. ETFs represent an undivided interest in a pool of securities and other assets, much like traditional mutual funds, but are bought and sold through broker-dealers on a securities exchange like ordinary stocks.

Leveraged ETFs seek returns that are more sensitive to market movements than traditional ETFs. Leveraged ETFs use complex financial instruments, such as equity swaps, derivatives, and futures contracts, to achieve returns that are two or three times greater than the underlying market movements. Leveraged ETFs are long investments, meaning they move in the same direction as the underlying index, sector, or benchmark: if the underlying assets increase in value, the leveraged ETF also increases in value, but at a higher rate. Leveraged inverse ETFs are short investments, meaning they move in the opposite direction as the underlying index, sector, or benchmark: if the underlying assets decrease in value, the leveraged inverse ETF increases in value at the higher rate.

Leveraged ETFs and leveraged inverse ETFs are not intended to be held for more than one day. Because of the compounding effect of the leverage feature, over time the performance of leveraged ETFs and leveraged inverse ETFs can differ significantly from the performance (or inverse of the performance) of their underlying index, sector, or benchmark. For example, an ETF seeking to deliver three times the daily return of the Russell 1000 Financial Services Index fell 53 percent even though the index actually gained 8 percent. The leveraged inverse ETF seeking to deliver three times the inverse of the Russell 1000 Financial Services Index's daily return lost 90 percent over the same period. As a result, leveraged ETFs and leveraged inverse ETFs are suitable only for actively managed professional investors, large hedge funds, and financial traders, and they should be held for no longer than one trading day. Nonetheless, they have been marketed and sold to retail customers as long-term investments since at least 2007.

In June 2009, the Financial Industry Regulatory Authority (FINRA) published Regulatory Notice 09-31, entitled "Non-Traditional ETFs, FINRA Reminds Firms of Sales Practice Obligations Relating to Leveraged and Inverse Exchange-Traded Funds," declaring that leveraged ETFs and inverse leveraged ETFs "typically are not suitable for retail investors who plan to hold them for more than one trading session, particularly in volatile markets."

The majority of leveraged ETFs and inverse leveraged ETFs were created by ProShares (part of the ProFunds Group), Direxion, and Rydex/SGI. Broker-dealers who sold leveraged ETFs and inverse leveraged ETFs include Fidelity Funds, UBS Wealth Management Americas (a division of UBS AG), Ameriprise Financial, Edward Jones, LPL Financial Group, and Morgan Stanley Smith Barney. After FINRA issued Regulatory Notice 09-31, all of these firms either stopped selling leveraged ETFs to retail customers or severely restricted such sales.

If you have any information about leveraged ETFs or leveraged inverse ETFs, or would like additional information about our investigation, please contact us at 800-443-8260. You may also obtain more information at www.etfcomplaints.com.

ETFs being investigated include the following:

ProShares UltraShort Real Estate ETF (SRS)

ProShares Ultra Basic Materials ETF (UYM)

ProShares Ultra Consumer Goods ETF (UGE)

ProShares Ultra Consumer Services ETF (UCC)

ProShares Ultra DJ-AIG Commodity ETF (UCD)

ProShares Ultra DJ-AIG Crude Oil ETF (UCO)

ProShares Ultra Dow 30 ETF (DDM)

ProShares Ultra Euro ETF (ULE)

ProShares Ultra Financials ETF (UYG)

ProShares Ultra Gold ETF (UGL)

ProShares Ultra Health Care ETF (RXL)

ProShares Ultra Industrials ETF (UXI)

ProShares Ultra MidCap 400 ETF (MVV)

ProShares Ultra Oil & Gas ETF (DIG)

ProShares Ultra QQQ ETF (QLD)

ProShares Ultra Real Estate ETF (URE)

ProShares Ultra Russell 1000 Growth ETF (UKF)

ProShares Ultra Russell 1000 Value ETF (UVG)

ProShares Ultra Russell 2000 ETF (UWM)

ProShares Ultra Russell 2000 Growth ETF (UKK)

ProShares Ultra Russell 2000 Value ETF (UVT)

ProShares Ultra Russell MidCap Growth ETF (UKW)

ProShares Ultra Russell MidCap Value ETF (UVU)

ProShares Ultra S&P 500 ETF (SSO)

ProShares Ultra Semiconductors ETF (USD)

ProShares Ultra Silver ETF (AGQ)

ProShares Ultra SmallCap 600 ETF (SAA)

ProShares Ultra Technology ETF (ROM)

ProShares Ultra Telecommunications ETF (LTL)

ProShares Ultra Utilities ETF (UPW)

ProShares Ultra Yen ETF (YCL)

ProShares UltraShort Basic Materials ETF (SMN)

ProShares UltraShort Consumer Goods ETF (SZK)

ProShares UltraShort Consumer Services ETF (SCC)

ProShares UltraShort DJ-AIG Commodity ETF (CMD)

ProShares UltraShort DJ-AIG Crude Oil ETF (SCO)

ProShares UltraShort Dow 30 ETF (DXD)

ProShares UltraShort Euro ETF (EUO)

ProShares UltraShort Financials ETF (SKF)

ProShares UltraShort FTSE/Xinhua China 25 ETF (FXP)

ProShares UltraShort Gold ETF (GLL)

ProShares UltraShort Health Care ETF (RXD)

ProShares UltraShort Industrials ETF (SIJ)

ProShares UltraShort Lehman 20+ Year Treasury Bond ETF (TBT)

ProShares UltraShort Lehman 7-10 Year Treasury Bond ETF (PST)

ProShares UltraShort MidCap 400 ETF (MZZ)

ProShares UltraShort MSCI EAFE ETF (EFU)

ProShares UltraShort MSCI Emerging Markets ETF (EEV)

ProShares UltraShort MSCI Japan ETF (EWV)

ProShares UltraShort Oil & Gas ETF (DUG)

ProShares UltraShort QQQ ETF (QID)

ProShares UltraShort Russell 1000 Growth ETF (SFK)

ProShares UltraShort Russell 1000 Value ETF (SJF)

ProShares UltraShort Russell 2000 ETF (TWM)

ProShares UltraShort Russell 2000 Growth ETF (SKK)

ProShares UltraShort Russell 2000 Value ETF (SJH)

ProShares UltraShort Russell MidCap Growth ETF (SDK)

ProShares UltraShort Russell MidCap Value ETF (SJL)

ProShares UltraShort S&P 500 ETF (SDS)

ProShares UltraShort Semiconductors ETF (SSG)

ProShares UltraShort Silver ETF (ZSL)

ProShares UltraShort SmallCap 600 ETF (SDD)

ProShares UltraShort Technology ETF (REW)

ProShares UltraShort Telecommunications ETF (TLL)

ProShares UltraShort Utilities ETF (SDP)

ProShares UltraShort Yen ETF (YCS)

Energy Bear 3X - Triple-Leveraged ETF (ERY)

Energy Bull 3X - Triple-Leveraged ETF (ERX)

Financial Bear 3X - Triple-Leveraged ETF (FAZ)

Financial Bull 3X - Triple-Leveraged ETF (FAS)

Large Cap Bear 3X - Triple-Leveraged ETF (BGZ)

Large Cap Bull 3X - Triple-Leveraged ETF (BGU)

Small Cap Bear 3X - Triple-Leveraged ETF (TZA)

Small Cap Bull 3X - Triple-Leveraged ETF (TNA)

Rydex 2x Russell 2000 ETF (RRY)

Rydex 2x S&P 500 ETF (RSU)

Rydex 2x S&P MidCap 400 ETF (RMM)

Rydex 2x S&P Select Sector Energy ETF (REA)

Rydex 2x S&P Select Sector Financial ETF (RFL)

Rydex 2x S&P Select Sector Health Care ETF (RHM)

Rydex 2x S&P Select Sector Technology ETF (RTG)

Rydex Inverse 2x Russell 2000 ETF (RRZ)

Rydex Inverse 2x S&P 500 ETF (RSW)

Rydex Inverse 2x S&P MidCap 400 ETF (RMS)

Rydex Inverse 2x S&P Select Sector Energy ETF (REC)

Rydex Inverse 2x S&P Select Sector Financial ETF (RFN)

Rydex Inverse 2x S&P Select Sector Health Care ETF (RHO)

Rydex Inverse 2x S&P Select Sector Technology ETF (RTW)

Market Vectors Double Long Euro ETN (URR)

Market Vectors Double Short Euro ETN (DRR)

PowerShares DB Agriculture Double Long ETN (DAG)

PowerShares DB Agriculture Double Short ETN (AGA)

PowerShares DB Base Metals Double Long ETN (BDD)

PowerShares DB Base Metals Double Short ETN (BOM)

PowerShares DB Commodity Double Long ETN (DYY)

PowerShares DB Commodity Double Short ETN (DEE)

PowerShares DB Crude Oil Double Long ETN (DXO)

PowerShares DB Crude Oil Double Short ETN (DTO)

PowerShares DB Gold Double Long ETN (DGP)

PowerShares DB Gold Double Short ETN (DZZ)

Horizons BetaPro COMEX Gold Bullion Bull Plus ETF (HBU-TSX)

Horizons BetaPro NYMEX Crude Oil Bear Plus ETF (HOD-TSX)

Horizons BetaPro NYMEX Crude Oil Bull Plus ETF (HOU-TSX)

Horizons BetaPro NYMEX Natural Gas Bear Plus ETF (HND-TSX)

Horizons BetaPro NYMEX Natural Gas Bull Plus ETF (HNU-TSX)

Horizons BetaPro S&P/TSX 60 Bear ETF (HXD-TSX)

Horizons BetaPro S&P/TSX 60 Bull ETF (HXU-TSX)

Horizons BetaPro S&P/TSX Capped Energy Bear Plus ETF (HED-TSX)

Horizons BetaPro S&P/TSX Capped Energy Bull Plus ETF (HEU-TSX)

Horizons BetaPro S&P/TSX Capped Financials Bear Plus ETF (HFD-TSX)

Horizons BetaPro S&P/TSX Capped Financials Bull Plus ETF (HFU-TSX)

Horizons BetaPro S&P/TSX Global Gold Bear Plus ETF (HGD-TSX)

Horizons BetaPro S&P/TSX Global Gold Bull Plus ETF (HGU-TSX)

Horizons BetaPro S&P/TSX Global Mining Bear Plus ETF (HMD-TSX)

Horizons BetaPro S&P/TSX Global Mining Bull Plus ETF (HMU-TSX)

ETFS Leveraged Agriculture ETF (LAGR-LSE)

ETFS Leveraged All Commodities ETF (LALL-LSE)

ETFS Leveraged Aluminium ETF (LALU-LSE)

ETFS Leveraged Cocoa ETF (LCOC-LSE)

ETFS Leveraged Coffee ETF (LCFE-LSE)

ETFS Leveraged Copper ETF (LCOP-LSE)

ETFS Leveraged Corn ETF (LCOR-LSE)

ETFS Leveraged Cotton ETF (LCTO-LSE)

ETFS Leveraged Crude Oil ETF (LOIL-LSE)

ETFS Leveraged Energy ETF (LNRG-LSE)

ETFS Leveraged Ex-Energy ETF (LNEY-LSE)

ETFS Leveraged Gasoline ETF (LGAS-LSE)

ETFS Leveraged Gold ETF (LBUL-LSE)

ETFS Leveraged Grains ETF (LGRA-LSE)

ETFS Leveraged Heating Oil ETF (LHEA-LSE)

ETFS Leveraged Industrial Metals ETF (LIME-LSE)

ETFS Leveraged Lead ETF (LLEA-LSE)

ETFS Leveraged Lean Hogs ETF (LLHO-LSE)

ETFS Leveraged Live Cattle ETF (LLCT-LSE)

ETFS Leveraged Livestock ETF (LLST-LSE)

ETFS Leveraged Natural Gas ETF (LNGA-LSE)

ETFS Leveraged Nickel ETF (LNIK-LSE)

ETFS Leveraged Petroleum ETF (LPET-LSE)

ETFS Leveraged Platinum ETF (LPLA-LSE)

ETFS Leveraged Precious Metals ETF (LPMT-LSE)

ETFS Leveraged Silver ETF (LSIL-LSE)

ETFS Leveraged Softs ETF (LSFT-LSE)

ETFS Leveraged Soybean Oil ETF (LSYO-LSE)

ETFS Leveraged Soybeans ETF (LSOB-LSE)

ETFS Leveraged Sugar ETF (LSUG-LSE)

ETFS Leveraged Tin ETF (LTIM-LSE)

ETFS Leveraged Wheat ETF (LWEA-LSE)

ETFS Leveraged Zinc ETF (LZIC-LSE)

Prior Results Do Not Guarantee A Similar Outcome.
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