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Don Dwyer Comment On Regulatory Notice 22-08

Don Dwyer
N/A

Leveraged and inverse funds are important to my investment strategy. I utilize these funds to protect my investments. Additionally, public investments should be available to all of the public, not just the privileged.

Consider that most actively managed mutual funds available to millions of Americans through their company 401k/403b plans underperform the market. Yet there are no special requirements to invest in those mutual funds.

If the goal is to protect the public, all 401k/403b plans would be limited to index mutual funds. But we know that would limit Americans from gaining market-beating returns from actively managed funds. As such, those actively managed funds are offered - even though there is a high probability that they will not beat the market.

Additionally, many corporate 401k/403b plans lack the ability to protect an employees portfolio from market corrections. As such, leveraged and inverse funds should actually be required in all corporate 401k/403b plans.

Leveraged and inverse funds are yet another vehicle to potential market-beating returns. They offer choices to individual investors to protect and grow their portfolios. They should be treated as any other actively managed fund. They should be available to all.