Connor Goldstick Comment On Regulatory Notice 22-08
Connor Goldstick
N/A
Leveraged and inverse ETFs are no more dangerous that buying high volatility stocks and options. They have a significant advantage over other options to increase return volatility. They keep consistent leverage (unlike options/futures) and they consist of a broad market portfolio (unlike individual stocks). By restricting the purchase of leveraged/inverse ETFs, people who wish to pursue more aggressive investment strategies will have to use worse products, causing them to take more risk than if the products were available.
Connor Goldstick Comment On Regulatory Notice 22-08
Leveraged and inverse ETFs are no more dangerous that buying high volatility stocks and options. They have a significant advantage over other options to increase return volatility. They keep consistent leverage (unlike options/futures) and they consist of a broad market portfolio (unlike individual stocks). By restricting the purchase of leveraged/inverse ETFs, people who wish to pursue more aggressive investment strategies will have to use worse products, causing them to take more risk than if the products were available.