I think that leveraged ETFs are of no use to anybody except for the people behind them. In addition to managing client assets for an RIA, I teach how to trade options and always tell my students to avoid leveraged ETFs like the plague. Most retail clients dont bother reading the prospectus to know that these are for day trading only or understand the slippage inherently built in to all leveraged ETFs that cause loss of value even when the underlying security has been trading in a range.
I sure hope that they are banned as they hurt a lot of people and only benefit companies like ProShares that promote the m.
Charan Singh Comment On Regulatory Notice 22-08
Hello,
I think that leveraged ETFs are of no use to anybody except for the people behind them. In addition to managing client assets for an RIA, I teach how to trade options and always tell my students to avoid leveraged ETFs like the plague. Most retail clients dont bother reading the prospectus to know that these are for day trading only or understand the slippage inherently built in to all leveraged ETFs that cause loss of value even when the underlying security has been trading in a range.
I sure hope that they are banned as they hurt a lot of people and only benefit companies like ProShares that promote the m.