Inverse ETFs, commodity based ETFs and alternative investment ETFs like BITO provide a simple mechanism to diversiy and hedge the market for any investor.
It’s a valuable investment tool for any investor who does not have access to highly specialized brokerage accounts with margin account.
Usually, the brokerage warns the investor about the dangers of such investments before the trade goes through.
When used wisely, judiciously and as a small portion of any portfolio, especially in a volatile market, it can hedge against losses which are bound to happen in a bear market.
The average investor, otherwise has no option other than to liquidate and wait out the turbulent period. The other option is to trade in the risky highly volatile options market.
As with any investment, one has to be vigilant and prompt in reversing course if any particular investment does not pan out. These ETFs provide a way of easily reversing course.
Even a dollar worth of profit is welcome. Usually, the commission and the tax is less than 100%. So, it’s a net gain.
Sometimes, a loss helps in reducing taxes. And, this option usually does not apply to average investor. But, can be used as a method of balancing taxes for a particular year. The option to use the strategy is available, if one chooses to use it.
Also, participating in such instruments gives an investor valuable knowledge and experience about alternative investments, which otherwise remain only available to sophisticated investors.
We learn from our mistakes. Sometimes, a loss is the best educator. Till, one doesn’t have skin in the game and participates, one doesn’t learn.
The SEC and FINRA should make rules that make such products more robust and not allow fly by night companies to float products which cannot meet SEC and FINRA safety criteria to protect investors.
Educating the average common investor and widespread participation will help make such products more robust and more inclusive in any portfolio.
For the Public
FINRA DATA
FINRA Data provides non-commercial use of data, specifically the ability to save data views and create and manage a Bond Watchlist.
For Industry Professionals
FINPRO
Registered representatives can fulfill Continuing Education requirements, view their industry CRD record and perform other compliance tasks.
For Member Firms
FINRA GATEWAY
Firm compliance professionals can access filings and requests, run reports and submit support tickets.
For Case Participants
DR PORTAL
Arbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal.
Need Help? | Check System Status
Log In to other FINRA systems
SSonwalkar Comment On Regulatory Notice 22-08
Inverse ETFs, commodity based ETFs and alternative investment ETFs like BITO provide a simple mechanism to diversiy and hedge the market for any investor.
It’s a valuable investment tool for any investor who does not have access to highly specialized brokerage accounts with margin account.
Usually, the brokerage warns the investor about the dangers of such investments before the trade goes through.
When used wisely, judiciously and as a small portion of any portfolio, especially in a volatile market, it can hedge against losses which are bound to happen in a bear market.
The average investor, otherwise has no option other than to liquidate and wait out the turbulent period. The other option is to trade in the risky highly volatile options market.
As with any investment, one has to be vigilant and prompt in reversing course if any particular investment does not pan out. These ETFs provide a way of easily reversing course.
Even a dollar worth of profit is welcome. Usually, the commission and the tax is less than 100%. So, it’s a net gain.
Sometimes, a loss helps in reducing taxes. And, this option usually does not apply to average investor. But, can be used as a method of balancing taxes for a particular year. The option to use the strategy is available, if one chooses to use it.
Also, participating in such instruments gives an investor valuable knowledge and experience about alternative investments, which otherwise remain only available to sophisticated investors.
We learn from our mistakes. Sometimes, a loss is the best educator. Till, one doesn’t have skin in the game and participates, one doesn’t learn.
The SEC and FINRA should make rules that make such products more robust and not allow fly by night companies to float products which cannot meet SEC and FINRA safety criteria to protect investors.
Educating the average common investor and widespread participation will help make such products more robust and more inclusive in any portfolio.