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James Schierenberg Comment On Regulatory Notice 22-08

James Schierenberg
N/A

Inverse and leveraged ETFs are a great way to hedge. I am using one (SH) right now to hedge the downside of a professionally managed 60/40 portion of my portfolio. Please don't make it more difficult for me to manage my money.

I normally use the -1X to hedge. I use -2X or more only if I am convinced that I am directionally correct as they have considerable frictional costs. These funds aren't that difficult to understand, and they can be very helpful.