I do not think that the use of leveraged and inverse funds need to be regulated. Any investor who would choose these types of funds has a specific purpose in mind, either of limiting risk without having to sell off positions, or of potentially increasing dividends--for example, in retirement. These investments are not that difficult to understand and can play an important part in a moderately educated investor's portfolio. Furthermore, there's a great deal of information available, on Morningstar and Nuveen CEF Connect, for example, that is very helpful in making informed decisions.
Louis Erb Comment On Regulatory Notice 22-08
I do not think that the use of leveraged and inverse funds need to be regulated. Any investor who would choose these types of funds has a specific purpose in mind, either of limiting risk without having to sell off positions, or of potentially increasing dividends--for example, in retirement. These investments are not that difficult to understand and can play an important part in a moderately educated investor's portfolio. Furthermore, there's a great deal of information available, on Morningstar and Nuveen CEF Connect, for example, that is very helpful in making informed decisions.