Leveraged ETF's provide a vehicle to trade momentum and volatility. Retail investors who don't have massive amounts of money like a hedge fund or other institutions would be at a disadvantage if required to pass a test or go through cooling off periods.
Placing restrictions would go against the very principle of capitalism that everybody should have access to the same investment opportunities regardless of their net worth. At the end of the day, investors are responsible for their choices and should be able to put their money wherever they see fit.
Roberto Puente Comment On Regulatory Notice 22-08
Leveraged ETF's provide a vehicle to trade momentum and volatility. Retail investors who don't have massive amounts of money like a hedge fund or other institutions would be at a disadvantage if required to pass a test or go through cooling off periods.
Placing restrictions would go against the very principle of capitalism that everybody should have access to the same investment opportunities regardless of their net worth. At the end of the day, investors are responsible for their choices and should be able to put their money wherever they see fit.