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Vladimir Sushkov Comment On Regulatory Notice 22-08

Vladimir Sushkov
N/A

As an investor I oppose restrictions on usage of publicly traded leveraged and inverse ETFs. I use them in limited quantities when I see an opportunity to boost my returns in the short term. I do understand the heightened risks these instruments carry, and I take full responsibility for possible losses that I may incur when using these types of ETFs. Leveraged and inverse ETFs are important tools in my investment strategies and I do not feel like I need any additional regulations for those. However I do agree that leveraged and inverse ETFs need more explanation and education for general public, in regards to that they should never be considered as "buy and hold" investments. I would support having dedicated paragraphs or chapters in the related ETF prospectuses, perhaps highlighted in bold font, to underscore all risks related to the particular ETF and a warning that the ETF should not be considered as a long term investment. I would also appreciate and support any materials explaining in more details how compounding works in daily leveraged ETFs, which may lead to negative returns over prolonged periods of time. More education, not more restrictions - that is what is needed here I believe.