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Rhett Zimmer Comment On Regulatory Notice 22-08

Rhett Zimmer
N/A

It is my responsibility as an investor to understand the dangers of any investment I make, not limited to leveraged funds. In fact, Leveraged ETFs are much safer than certain other instruments such as options.

Leveraged ETFs provide a valuable addition to various portfolios for hedging and certain long term risk parity portfolios.

Do not restrict these to individuals with high networth individuals. Investors should be able to make their own decisions, with an understanding of the risks.

I believe the requirement to read literature explaining the risks or undergo a reasonable knowledge test would be sufficient to help investors understand those risks.

However, special approval or networth requirements should absolutely not be mandatory for public securities. Cooling off periods are frankly ridiculous and outright damaging, and should be considered under no circumstance. Cooling off periods would not even help minimize risk, instead leaving investors without options that may help their portfolios.