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Charles Watson Comment On Regulatory Notice 22-08

Charles Watson
N/A

I am very much opposed to any limits or restrictions on an individual investor's ability to purchase non-leveraged inverse ETFs. These securities allow individual investors to hedge during periods when traditional markets are experiencing negative returns. For example, during the first four months of 2022 SPY was down (12.99)%, but SH had a positive return of 12.85% Likewise, IEF had a negative return of (10.33)%, but TBX was up 10.71%. Like all investments, inverse ETFs involve risks, but they enable small investors to mitigate overall market risk.