Michael Sacerdote Comment On Regulatory Notice 22-08
Michael Sacerdote
N/A
I'm an ordinary person and I routinely use leveraged and and inverse ETFs to take advantage of special situations at a minimum of risk.
TQQQ, for example, allowed me to gain exposure to the tech market during the COVID-19 bust with only a small fraction of the capital commitment that it would have otherwise taken. TBT enabled me to hedge against interest rate rises without having to make a giant capital outlay and without having to resort to exotic derivatives. Leveraged and inverse ETFs also have wonderful liquidity and are easy for the average investor to understand and price.
Leveraged and inverse ETFs are much, much safer than margin loans, futures, and other derivatives. They are incredibly useful to people who have only modest amounts of capital to invest.
Michael Sacerdote Comment On Regulatory Notice 22-08
I'm an ordinary person and I routinely use leveraged and and inverse ETFs to take advantage of special situations at a minimum of risk.
TQQQ, for example, allowed me to gain exposure to the tech market during the COVID-19 bust with only a small fraction of the capital commitment that it would have otherwise taken. TBT enabled me to hedge against interest rate rises without having to make a giant capital outlay and without having to resort to exotic derivatives. Leveraged and inverse ETFs also have wonderful liquidity and are easy for the average investor to understand and price.
Leveraged and inverse ETFs are much, much safer than margin loans, futures, and other derivatives. They are incredibly useful to people who have only modest amounts of capital to invest.