As an investor in leveraged ETFs, I oppose adding additional requirements to be able to invest in them. There are already very aggressive warnings against investing in leveraged ETFs on the brokerage sites that I've used (specifically Fidelity and Schwab). These extra warnings informed me that these products are not suitable for most investors and made you acknowledge that these investments are more risky than normal stocks or ETFs. These warnings were enough to scare me away from investing in leveraged ETFs for several years before I felt comfortable enough doing so. I personally feel that these warnings are already enough to dissuade people who might not be experienced investors.
Sean Hickey Comment On Regulatory Notice 22-08
As an investor in leveraged ETFs, I oppose adding additional requirements to be able to invest in them. There are already very aggressive warnings against investing in leveraged ETFs on the brokerage sites that I've used (specifically Fidelity and Schwab). These extra warnings informed me that these products are not suitable for most investors and made you acknowledge that these investments are more risky than normal stocks or ETFs. These warnings were enough to scare me away from investing in leveraged ETFs for several years before I felt comfortable enough doing so. I personally feel that these warnings are already enough to dissuade people who might not be experienced investors.