I have found these instruments very valuable. Let me give you a simple example. Maybe four, five years ago my daughter opened a Roth IRA. We deposited exactly $2500 into two 2X leveraged funds, ROM and UCC. Complete buy and hold, no trading at all, especially as the IRA is held by Vanguard which restricted buying and selling of these securities altogether. So no option to sell and re-buy. Even given all the recent volatility in the market, as I write, that $2500 is worth $14,172 and probably more since I'm looking at a Yahoo portfolio which doesn't include any dividends she may have received.
Solomon Katz Comment On Regulatory Notice 22-08
I have found these instruments very valuable. Let me give you a simple example. Maybe four, five years ago my daughter opened a Roth IRA. We deposited exactly $2500 into two 2X leveraged funds, ROM and UCC. Complete buy and hold, no trading at all, especially as the IRA is held by Vanguard which restricted buying and selling of these securities altogether. So no option to sell and re-buy. Even given all the recent volatility in the market, as I write, that $2500 is worth $14,172 and probably more since I'm looking at a Yahoo portfolio which doesn't include any dividends she may have received.