I feel that the move to restrict access to leveraged and inverse funds is a wrong one. Such a restriction would devoid the retail investor from access to quality instruments that could be significantly beneficial. Several academic studies have underlined the importance of leverage. The LifeCycle Investment from Yale is one such example. These leveraged and inverse funds provide a simple option for investors looking to incorporate strategies from these well researched academic studies as part of their portfolio. Further, if access to these instruments are restricted, Im afraid that the common retail investor may look at extremely dangerous vehicles such as crypto, where frauds and scams are rampant. Therefore, I humbly request FINRA not to place any restrictions on leveraged and inverse ETFs.
Anand Iyer Comment On Regulatory Notice 22-08
I feel that the move to restrict access to leveraged and inverse funds is a wrong one. Such a restriction would devoid the retail investor from access to quality instruments that could be significantly beneficial. Several academic studies have underlined the importance of leverage. The LifeCycle Investment from Yale is one such example. These leveraged and inverse funds provide a simple option for investors looking to incorporate strategies from these well researched academic studies as part of their portfolio. Further, if access to these instruments are restricted, Im afraid that the common retail investor may look at extremely dangerous vehicles such as crypto, where frauds and scams are rampant. Therefore, I humbly request FINRA not to place any restrictions on leveraged and inverse ETFs.