Leveraged etfs give retail investors access to the same kind of lending rates that institutions have. I understand that there is a concern that retail investors will overexpose them deserve. However, a better approach would be increasing the amount of disclosures that retail needs to make before trading leveraged etfs, not banning and liquidating leveraged etfs. Moreover, many retail investors use leveraged etfs as instruments to hedge with in complex strategies. Getting rid of leveraged etfs would remove a key tool that many retail traders rely on and would ruin investment strategies for thousands of people. Please reconsider.
Jeremy Slovak Comment On Regulatory Notice 22-08
Leveraged etfs give retail investors access to the same kind of lending rates that institutions have. I understand that there is a concern that retail investors will overexpose them deserve. However, a better approach would be increasing the amount of disclosures that retail needs to make before trading leveraged etfs, not banning and liquidating leveraged etfs. Moreover, many retail investors use leveraged etfs as instruments to hedge with in complex strategies. Getting rid of leveraged etfs would remove a key tool that many retail traders rely on and would ruin investment strategies for thousands of people. Please reconsider.