The ability for investors to invest in leveraged ETFs should not be altered in any way. ProShares and other firms do an excellent job informing investors of the inherent risks in leveraged ETFs. It is then up to the investor to make his/her own informed decision on whether he/she has the risk appetite to invest in such funds. In a free market democratic society, investing ones own earned funds where they see fit is a fundamental principle. Attempting to regulate leveraged funds will open the floodgates for further regulation attempts and is in direct contradiction to a free market capitalistic society. Therefore, there should not be any additional regulation on leveraged ETFs.
Jonathan Baker Comment On Regulatory Notice 22-08
The ability for investors to invest in leveraged ETFs should not be altered in any way. ProShares and other firms do an excellent job informing investors of the inherent risks in leveraged ETFs. It is then up to the investor to make his/her own informed decision on whether he/she has the risk appetite to invest in such funds. In a free market democratic society, investing ones own earned funds where they see fit is a fundamental principle. Attempting to regulate leveraged funds will open the floodgates for further regulation attempts and is in direct contradiction to a free market capitalistic society. Therefore, there should not be any additional regulation on leveraged ETFs.