The sudden and precipitous decline in underlying emerging markets and commodities has left many investors wondering how to recoup investment losses in First Trust ETFs and structured products. The answer usually depends upon three factors: 1) whether the investor purchased the security through a brokerage firm and financial advisor; 2) whether the financial advisor’s recommendation to invest in the First Trust ETF or structured product was suitable at the time of the investment based upon several additional factors; and 3) whether the financial advisor adequately explained all of the risks associated with investing in these risky and speculative investments.
Many investors are unaware that brokerage firms who recommend First Trust investment products may be held liable for investment losses due to negligent recommendations or misrepresentations and/or omissions. Indeed, brokerage firms that sell such products are required to perform adequate due diligence prior to recommending the investments to an investor. Brokerage firms are also required to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives. Moreover, brokerage firms are required to adequately explain the risks associated with investing in emerging markets and commodity-related funds, including but not limited to the fact that these investments are largely dependent upon volatile and speculative emerging market economies and commodity prices.
Below is a list of several First Trust ETFs that have suffered declines in value beginning in the fourth quarter of 2014:
- First Trust Latin America AlphaDEX Fund (FLN)
- First Trust South Korea AlphaDEX Fund (FKO)
- First Trust Brazil AlphaDEX Fund (FBZ)
- First Trust ISE Global Copper Index Fund (CU)
- First Trust ISE Global Platinum Index Fund (PLTM)
- First Trust ISE Global Wind Energy Index Fund (FAN)
- First Trust Global Tactical Commodity Strategy Fund (FTGC)
- First Trust ISE-Revere Natural Gas Index Fund (FCG)
- First Trust Energy AlphaDEX Fund (FXN)
If you lost money investing in First Trust exchange-traded funds (ETFs), you may be entitled to recover your investment losses through the FINRA arbitration process. Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. Please complete our contact form below or contact one of our attorneys at (800) 627-2179 to schedule a free consultation.