I believe that inverse ETFs, when used properly, are an economical and relatively low risk way to hedge equity portfolios. I have avoided serious losses in the current bear market due to the availability of these products. Restriction of these products would be a disservice to smaller investors who wish to avoid the cost of options and the extreme leverage of the futures markets.
Thomas Lisy Comment On Regulatory Notice 22-08
I believe that inverse ETFs, when used properly, are an economical and relatively low risk way to hedge equity portfolios. I have avoided serious losses in the current bear market due to the availability of these products. Restriction of these products would be a disservice to smaller investors who wish to avoid the cost of options and the extreme leverage of the futures markets.