I would urge you not to place any new restrictions on leveraged ETF products. I am a retail investor and am interested in investing in these products for a small part of my portfolio as part of a high risk / high reward investment. Leveraged strategies have been used by large institutional and high net worth investors for some time and leveraged ETFs democratize access to them. It isn't fair to restrict access to leveraged ETFs while continuing to allow institutions or large individual investors to invest with leverage using other methods.
These leveraged ETFs can go to zero but the individual investor can't lose more than their initial investment. This makes them safer compared to other types of leveraged investments such as margin loans where you can end up losing more money than your initial investment.
Individual stocks can also go to zero but no one has proposed that small investors should be unable to buy an individual stock. Leveraged ETFs should continue to be available for purchase in 401K and IRA plans for the motivated investor without any restrictions on their holding period.
For the Public
FINRA DATA
FINRA Data provides non-commercial use of data, specifically the ability to save data views and create and manage a Bond Watchlist.
For Industry Professionals
FINPRO
Registered representatives can fulfill Continuing Education requirements, view their industry CRD record and perform other compliance tasks.
For Member Firms
FINRA GATEWAY
Firm compliance professionals can access filings and requests, run reports and submit support tickets.
For Case Participants
DR PORTAL
Arbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal.
Need Help? | Check System Status
Log In to other FINRA systems
Gregory Ruttan Comment On Regulatory Notice 22-08
I would urge you not to place any new restrictions on leveraged ETF products. I am a retail investor and am interested in investing in these products for a small part of my portfolio as part of a high risk / high reward investment. Leveraged strategies have been used by large institutional and high net worth investors for some time and leveraged ETFs democratize access to them. It isn't fair to restrict access to leveraged ETFs while continuing to allow institutions or large individual investors to invest with leverage using other methods.
These leveraged ETFs can go to zero but the individual investor can't lose more than their initial investment. This makes them safer compared to other types of leveraged investments such as margin loans where you can end up losing more money than your initial investment.
Individual stocks can also go to zero but no one has proposed that small investors should be unable to buy an individual stock. Leveraged ETFs should continue to be available for purchase in 401K and IRA plans for the motivated investor without any restrictions on their holding period.