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?
Andrew Sang Comment On Regulatory Notice 22-08
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?