Leveraged and inverse funds are important short-term investment strategies which should be easily accessible to retail investors. Retail investors already have limited access to hedging besides bonds, particularly short-term hedges. Other hedging choices like covered calls through options derivatives are more complex than inverse or leveraged funds. Putting increased barriers for retail investment only hurts the average person. Lastly, there are already numerous warning signs about the long-term risks of inverse funds and leveraged etfs before buying these products
Brendan Chen Comment On Regulatory Notice 22-08
Leveraged and inverse funds are important short-term investment strategies which should be easily accessible to retail investors. Retail investors already have limited access to hedging besides bonds, particularly short-term hedges. Other hedging choices like covered calls through options derivatives are more complex than inverse or leveraged funds. Putting increased barriers for retail investment only hurts the average person. Lastly, there are already numerous warning signs about the long-term risks of inverse funds and leveraged etfs before buying these products