I am generally of the opinion that leveraged ETFs, like Options, are not appropriate for most investors. While I would support these being available in accounts marked "Aggressive Growth" or "Trading" for account objective, their inclusion in retirement account like IRAs should be restricted due to the extreme potential for volatility. I am also of the opinion that these should not be something an advisor can solicit but instead should be a client directed investment. My broker dealer, LPL Financial, already restricts the usage of these investments and I am in agreement that the risk exceeds the reward potential.
Matthew Speed Comment On Regulatory Notice 22-08
I am generally of the opinion that leveraged ETFs, like Options, are not appropriate for most investors. While I would support these being available in accounts marked "Aggressive Growth" or "Trading" for account objective, their inclusion in retirement account like IRAs should be restricted due to the extreme potential for volatility. I am also of the opinion that these should not be something an advisor can solicit but instead should be a client directed investment. My broker dealer, LPL Financial, already restricts the usage of these investments and I am in agreement that the risk exceeds the reward potential.