UBS Wealth Management Americas has suspended purchases of leveraged and inverse exchange-traded funds, saying their short-term nature is inconsistent with UBS' long-term view of investing.

UBS Wealth Management Americas, the U.S. brokerage business of UBS AG (UBS), suspended purchases of the ETFs immediately, citing their short-term nature and recent regulatory guidance on the instruments.

In addition, Wells Fargo Advisors is reviewing its policy "regarding non-traditional ETFs," and will be communicating any changes to its financial advisers, a spokeswoman said in an email.

UBS Wealth Management, in its statement, said, "recent regulatory guidance on leveraged and inverse ETFs reinforces the short-term nature of these products, particularly in volatile markets."

UBS Wealth Management Americas' financial advisers have been briefed and the company is contacting its clients regarding the securities, the statement said.

The news comes as other brokerages have also altered their sales practices of these complex instruments.

As reported last week, LPL Investment Holdings Inc. of Boston has prohibited sales of the leveraged ETFs that seek more than two times the long or short performance of their target index, and Ameriprise Financial Inc. (AMP) of Minneapolis has told its advisers to stop soliciting the purchase of the products, in response to recent guidance from the Financial Industry Regulatory Authority, or Finra, on the products.

St. Louis-based Edward Jones & Co. decided to stop selling leveraged ETFs in June during a regular review of the investment products it offers, saying that they aren't suitable for long-term investors.

ETFs trade daily on exchanges like stocks. Their leveraged brethren, sometimes labeled "ultra" or "2X," use futures or derivatives to multiply the daily returns of an index, sometimes striving to double or triple the return.

Some are concerned that retail investors may not understand how leveraged ETFs work, and that they can lead to unexpected results. Massachusetts authorities are investigating the sales practices associated with leveraged ETFs, and Finra reminded brokers and registered investment advisers in June to use care in selling ETFs that offer leverage, are designed to perform inversely to the index or benchmark they track, or both. Finra noted that the instruments are complex and typically unsuitable for retail investors who plan to hold them longer than one trading session.

-By Daisy Maxey, Dow Jones Newswires; 212 416 2237; daisy.maxey@dowjones.com