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Arvind Chopra Comment On Regulatory Notice 22-08

Arvind Chopra
N/A

Leveraged ETFs especially on broad indices such as SP500/NDX100/US-Treasury are much better way to adjust risk reward tradeoff.

1. Such ETFs are LESS RISKY compared to Call/Put Options in which investors usually loose money due to time decays.

2. Such ETFs are also a much cheaper way to achieve leverage instead of margin accounts/interest.

3. Leveraged ETFs are much more efficient than Call/Put options which have much wider bid/ask spreads

I am surprised that this proposal is being considered. It will push investors into using other forms of leverage using Options and Margins which are lot riskier and more expensive.