Skip to main content

Steven Lamb Comment On Regulatory Notice 22-08

Steven Lamb
N/A

Leveraged ETFs provide a valuable benefit to shareholders of all kinds. They generally allow exposure to go long or short an index and magnify that exposure, without the use of complex options which can quickly destroy a portfolio just by the passage of time. I personally use these leveraged ETFs to take advantage of making trading profits such that I not dependent on a buy and hold strategy or for market indexes to make a comeback (just ask investors in Japan how long a market index can stay down for - 25+ years in Japan). It allows me to be able to avoid individual stocks where even well established stocks like Facebook and Paypal can lose 15% ior more in a day and which, like all individual stocks, face being the General Electric (once the most valuable company on the planet to nearly bankrupt in less than 15 years). Banning these products will be a massive negative for retail investors. It will push them to more risky strategies like meme stocks and options to try to boost their returns, instead of an index fund which has leverage to boost the return. In the end many of these investors will seek to boost returns or trading profits - and taking away this valuable means in leveraged funds is just a terrible idea. It pushes people away from index and diversified portfolio investing and into single stock risk and betting on things like out of the money options and praying the timing works out. I beg of you - please do not take our ability to invest in leveraged ETF's away. Its a valuable product that I have used for over 15 years.