Hello,
As an active investor, recently retired, my family and I depend on intelligent use of leveraged ETFs to grow and sustain our portfolio.
I oppose any restrictions on retail investors to use leveraged, inverse or volatility index related ETFs.
These leveraged ETFs are simply a reasonably straight forward alternative investment, which generally consists of options contracts related to the underlying assets. Sometimes I trade options contracts directly, but leveraged ETFs offer a better way to invest or hedge investments without undue complexity of options contracts and also with an easily quantifiable amount of investment risk. Like any simple investment, you can only lose what you purchased, and no more. Like any investment, an investor needs to understand what the asset consists of, what it can be used for, what costs it may have to hold or purchase, etc. This is all standard caveats or recommendations for all investors.
Limiting access to existing leveraged ETFs would put me at a large disadvantage to institutional or privileged investors who can afford investment managers or who would still directly trade options.
I have traded options and leveraged ETFs for about 10 years, and I plan to continue reasonable allocations to leveraged, inverse and volatility ETFs, as market conditions merit.
Please don't deprive me as the little guy investor of the access to use these valuable investment tools.
If you're looking for something to regulate, please go catch crypto pump & dumper folks, or retirement plan administrators who charge excessive per fund fees. (My wife's public school plan, Voya for State of Michigan, took her $300 of part time employment contributions down to $50 in a year or two before we realized and rolled it out to a good IRA.)
Dale Klein Comment On Regulatory Notice 22-08
Hello,
As an active investor, recently retired, my family and I depend on intelligent use of leveraged ETFs to grow and sustain our portfolio.
I oppose any restrictions on retail investors to use leveraged, inverse or volatility index related ETFs.
These leveraged ETFs are simply a reasonably straight forward alternative investment, which generally consists of options contracts related to the underlying assets. Sometimes I trade options contracts directly, but leveraged ETFs offer a better way to invest or hedge investments without undue complexity of options contracts and also with an easily quantifiable amount of investment risk. Like any simple investment, you can only lose what you purchased, and no more. Like any investment, an investor needs to understand what the asset consists of, what it can be used for, what costs it may have to hold or purchase, etc. This is all standard caveats or recommendations for all investors.
Limiting access to existing leveraged ETFs would put me at a large disadvantage to institutional or privileged investors who can afford investment managers or who would still directly trade options.
I have traded options and leveraged ETFs for about 10 years, and I plan to continue reasonable allocations to leveraged, inverse and volatility ETFs, as market conditions merit.
Please don't deprive me as the little guy investor of the access to use these valuable investment tools.
If you're looking for something to regulate, please go catch crypto pump & dumper folks, or retirement plan administrators who charge excessive per fund fees. (My wife's public school plan, Voya for State of Michigan, took her $300 of part time employment contributions down to $50 in a year or two before we realized and rolled it out to a good IRA.)