Dear FINRA,
I have used leveraged ETFs as core parts of my investment and retirement portfolios. They are extremely efficient and liquid, and allow me to use less cash. For example, if I have $100 to invest, I can invest $50 in the 2X S&P 500 ETF and invest my $50 cash in U.S. Treasuries. I still get 100% exposure to the US stock market and can make extra return on the cash for my retirement or investments. The same holds true when the market is going down. The volatility of my portfolio has gone down and returns up. Leveraged ETFs on the US stock market are one of the greatest investment products ever invented. I no longer have to use risky and less liquid options to hedge. I have come to rely on these products and can never imagine a world without them.
John Schlossel Comment On Regulatory Notice 22-08
Dear FINRA,
I have used leveraged ETFs as core parts of my investment and retirement portfolios. They are extremely efficient and liquid, and allow me to use less cash. For example, if I have $100 to invest, I can invest $50 in the 2X S&P 500 ETF and invest my $50 cash in U.S. Treasuries. I still get 100% exposure to the US stock market and can make extra return on the cash for my retirement or investments. The same holds true when the market is going down. The volatility of my portfolio has gone down and returns up. Leveraged ETFs on the US stock market are one of the greatest investment products ever invented. I no longer have to use risky and less liquid options to hedge. I have come to rely on these products and can never imagine a world without them.