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Andrew Sang Comment On Regulatory Notice 22-08

Andrew Sang
N/A

I am an individual investor who utilizes leveraged ETFs to get leverage with investing. For the small portion of my portfolio that I dedicate to leveraged ETFs, they are an excellent source of taking on a little more risk with a small amount of capital. As long as people are aware of the potential risks with leveraged ETFs like huge drawdowns and fund closures, I think there shouldn't be major regulations on these sorts of products.

It's unclear exactly what the proposed regulation will look like, but at face value, it seems like a very blanket rule aimed at an unclear problem. Is there a large population of people who are unaware of the risks of leveraged ETFs? And, would the benefits to this proposed regulation outweigh the increased transactional costs?