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Samuel Hwang Comment On Regulatory Notice 22-08

Samuel Hwang
N/A

Leveraged funds and ETF's are important tools to allow investors to gain market leverage at a manageable level of risk, compared to traditional methods of leverage, such as the use of margin. Investors who research and learn the appropriate use of leveraged funds are able to use them as a part of an overall portfolio and generate leverage without jeopardizing their entire net worth. In comparison, the use of margin may result in greater losses than the investor's initial capital. Therefore, it is essential for retail investor to keep their full access to leveraged funds. Taking away this access would be unfair to retail investors, as they would lose essential tools for financial growth. It would be additionally unfair if institutional investors are able to maintain access, while retail investors are suppressed.