Please do not limit private investors access to 2x leveraged index funds and non-leveraged inverse funds. A leveraged fund based on a broad index (S&P500, Nasdaq, total market, etc) tends to be a less expensive and safer alternative to broker margin. They represent a valuable tool for ordinary investors to access leverage outside of potentially predatory broker margin interest rates and unpredictable margin calls or forced liquidation.
Im not opposed to limits on 3x leverage funds, or leveraged funds based on narrow market segments. And all funds should meet stringent standards of transparency.
Chris Dalton Comment On Regulatory Notice 22-08
Please do not limit private investors access to 2x leveraged index funds and non-leveraged inverse funds. A leveraged fund based on a broad index (S&P500, Nasdaq, total market, etc) tends to be a less expensive and safer alternative to broker margin. They represent a valuable tool for ordinary investors to access leverage outside of potentially predatory broker margin interest rates and unpredictable margin calls or forced liquidation.
Im not opposed to limits on 3x leverage funds, or leveraged funds based on narrow market segments. And all funds should meet stringent standards of transparency.
Sincerely, Chris Dalton