Soreide Law Group is conducting an investigation on behalf of our clients whose brokers or financial advisors recommended:
Credit Suisse Group AG’s VelocityShares Daily Inverse VIX Short-Term Exchange Traded Notes (NASDAQ:XIV)
Credit Suisse plans to end XIV VelocityShares Daily Inverse VIX Short-Term ETN.
If you were betting that rising volatility would go down and not higher then you may have purchased XIV (VelocityShares Daily Inverse Short ETN). Volatility subsequently went up and wiped out most, if not all of the value of the underlying security betting against volatility rising. In a nutshell, this ETN is short volatility. When an explosion of volatility occurs in the range of 100% then the underlying instrument is badly punished. On 2/5/18 the CBOE volatility index jumped to 38.8, the highest level in years.
The prospectus language allows Credit Suisse to shutter the fund if the Intraday Indicative Value is equal to or less than 20 percent of the prior day's Closing Indicative Value (among other reasons). Many stock brokers may not have disclosed this to their clients.
The XIV Indicative Value collapsed from 108.37 to 4.22, a 96 percent decline, and well under the 20 percent threshold.
If you bought XIV on a self-directed trading platform we cannot assist you with your claim. If your stock broker or financial advisor made recommendations to you that you should hold XIV then please call Soreide Law Group for a free consultation with a securities lawyer to possibly recover your XIV VelocityShares Daily Inverse VIX Short-Term ETN losses at: 888-760-6552.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.