Comments: I would be against limiting access to the leveraged indexes. These provide both diversity for small investors, while providing outsized returns at a lower cost than mutual funds. The TQQQ grew from $19 in March 2020 to $200 by Jan 2021 before a 2/1 split. It was up 1200% from Sept 2016 to Sept 2021. If FINRA is really looking out for investors, how is limiting such returns in the interests of small investors? Buying DIG a 2x oil ETF in Nov 2020 at $17 which then went up on the reopening of the economy to $157 on April 18, 2022... a return 9 fold in just 18 months. IF there are any limits, then make investors watch an informational video on leveraged ETFs -- don't restrict access to one of the best investment opportunities for individuals to get diversified products which FAR out perform alternative "safe" investments like mutual funds, with their poor performance at much higher fees. And I say this as both a long-time investor, and as a candidate for Congress this year. I smell false arguments of "investor safety" being behind such a recommendation. If you want to really limit access to protect investors, then limit mutual fund fees to 1%, limit the purchases of 10 year bonds when we have record low interest rates.
Terry Martin Comment On Regulatory Notice 22-08
Comments: I would be against limiting access to the leveraged indexes. These provide both diversity for small investors, while providing outsized returns at a lower cost than mutual funds. The TQQQ grew from $19 in March 2020 to $200 by Jan 2021 before a 2/1 split. It was up 1200% from Sept 2016 to Sept 2021. If FINRA is really looking out for investors, how is limiting such returns in the interests of small investors? Buying DIG a 2x oil ETF in Nov 2020 at $17 which then went up on the reopening of the economy to $157 on April 18, 2022... a return 9 fold in just 18 months. IF there are any limits, then make investors watch an informational video on leveraged ETFs -- don't restrict access to one of the best investment opportunities for individuals to get diversified products which FAR out perform alternative "safe" investments like mutual funds, with their poor performance at much higher fees. And I say this as both a long-time investor, and as a candidate for Congress this year. I smell false arguments of "investor safety" being behind such a recommendation. If you want to really limit access to protect investors, then limit mutual fund fees to 1%, limit the purchases of 10 year bonds when we have record low interest rates.