The risks and benefits of leveraged ETFs are well known to investors. I should be able to invest in a product that I research and feel comfortable investing in. If we regulate leveraged etfs, what about regulating home purchasing (5x leverage) or the actions of Wall Street.. where large players can easily manipulate single stocks through short selling or otherwise?
In the current environment of overvalued stocks and bonds across the board, the winning strategy is short everything. You want to take that away, right now, at the top of this massive bubble?
Regulators, the Government, and the FED got us in this mess. Now, the only good option is going short. I understand the risks. And I want you people to stay out of my way.
It is very important for an informed and risk aware investor to take calculated risk. While leveraged funds are riskier than traditional stocks, funds, etc, none-the-less, they provide a very crucial diversification alpha to smart investors.
I strongly urge SEC, regulators, Congress, and everyone else involved in restricting the access to leveraged ETFs in retirement accounts.
The decision for an individual to invest in any stock, bond, commodity or derivative future never be restricted by a subjective analysis of an individual's understanding of that particular investment instrument. Risk in investment is a specifically individual decision to made by an investor.
If an investment instrument is so complex as to need restriction to only the high income or
most every success story I've ever heard about investing involves somebody picking the stock of a company who's work they want to be part of. No special knowledge, t tricks, equipment or strategy. And, the stern warnings of risk are sufficient and usually heeded. What are you going to test people on, addition and subtraction? No testing is valid in my opinion.
To whom it may concern,
I decide how I want to invest my money. I do not want a bureaucrat deciding for me. I've been a stock investor for 50 years and I trade the inverse and leveraged ETF's as a hedge on my portfolio. I understand how the are priced. I really do not need FINRA telling me to take some kind of test.
I employ a mix of stocks, and both leveraged and non-leveraged ETFs to achieve investment goals for over 10 years. ETFs provide a facile means to establish both long and short positions when markets reach extreme levels. Non availability of inverse and leveraged ETFs would make establishing planned portfolio positions difficult, if not impossible.
Bitcoin is now a standard, conventional asset class, along with stocks, bonds, and precious metals. US citizens should be able to freely invest in bitcoin and bitcoin-tracking funds if they wish. Citizens benefit from having a greater diversity of investment options, including bitcoin and bitcoin-tracking funds. The reality of investing is that each person is responsible for their own investments
Comments:In a capitalst society such as ours, I see no reason to regulate leveraged & inverse ETF's. They are simpler than shorting stocks or using put's & calls. I have found that they correlate to their 1X base very close. Their usually is no limitations even in a retirement account. Please, please we don't need this senseless regualation. Thank you, Roger Smith
Each individual investor should be able to decide which investment suits his/her needs. There are usually articles from the brokerage firms and online. All investments have their own risk. The best of stocks can have a down side. The investing community does not need the Government or any of its bodies overlooking each individual's investments.