The T-Rex 2X Inverse Nvidia Daily Target ETF (NVDQ) has recently caused significant losses for investors. This Exchange Traded Fund or ETF, which aims to capitalize on declines in Nvidia’s stock, was recommended by some financial advisors as a strategic investment for clients seeking to profit from the tech giant’s perceived downturn. However, as Nvidia’s stock price surged, this leveraged inverse ETF led to substantial losses.
Leveraged and inverse ETFs like the T-Rex 2X are intended for short-term, tactical trades. Despite this, financial advisors recommended the product to customers without fully explaining the complexities and risks involved, particularly the daily resetting feature that compounds return over time. For investors who held the ETF for extended periods, this investment product’s inverse structure led to significant losses as Nvidia’s stock rose instead of falling.
Financial advisors have duties to recommend investments that are suitable to their clients and perform due diligence on the investment products they recommend and sell to investors. If your financial advisor recommended that you invest in T-Rex 2X Inverse Nvidia Daily Target ETF, you may have a claim to recover your investment losses.
The attorneys at Lax & Neville LLP have extensive experience in successfully prosecuting claims on behalf of customers who are victims of sales practice abuses and who have suffered losses as a result of unsuitable recommendations and investment and securities fraud. If you invested in T-Rex 2X Inverse Nvidia Daily Target ETFs, please contact Lax & Neville LLP today at (212) 696-1999 to schedule a consultation.