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Ray Jang Comment On Regulatory Notice 22-08

Ray Jang
N/A

The purpose of restricting individual investors to purchase leverage ETFs by FINRA is questionable since my stock broker, Fidelity, already informs investors volatility and risks of losing capital seriously. Those who are trading leveraged ETFs are well aware of the consequences and ready to be responsible for high market volatility. In reality, most of novice individual traders don't know what leverage ETFs are. Some of leveraged ETFs with underlying indexes such as S&P 500 and NASDAQ 100 provide exceptional capital diversification among the top-class companies in the world. They are more volatile, but less risky compared to investing in non-leveraged individual stocks that always have risks to be delisted. Even 3x leveraged ETFs following S&P 500 and NASDAQ 100 indexes are impossible to be delisted because of the circuit breaker. A lot of individual investors nowadays are educated and smart that they are capable of investing in more aggressive products. The days of relying on financial advisors to make investment decisions are already over.