I use leveraged funds to hedge my accounts in volatile markets. They are a particularly efficient and inexpensive way to do that in a short-term way. Regulations make short-selling as a hedge very difficult and cumbersome; the ability to access leveraged ETFs levels the playing field for retail investors who do not use brokers. I understand the risks and decay of the instruments, but those are
It is easy to understand that, in the long run, markets go up and that, therefore, an inverse fund that shorts an index is not a profitable long-term investment.
But it is also obvious it can be used to hedge long investments and limit the impact of a catastrophic downturn. And since it is related to an index, it is much less volatile and risky than many individual stocks.
Therefore, I don&#
my previous submission got out before it was finished. Inverse and leveraged funds provide an essential tool for retail investors to balance and hedge a portfolio at reasonable cost. It is impractical - and in some cases impossible - to effect short sales in a retail broker account. Having a ready tool to be able to reduce the market exposure in a portfolio is an essential part of investing for a
I am horrified and appalled that such a scam would even be suggested. There are trillions of dollars invested in leveraged and inverse etfs. In a bear market the inverse funds are the only things going up, as well you know. You cannot manipulate the market higher by effectively banning short selling, which is what this does. It will not work. As for me, if you institute these rules or anything
It seems clear that any regulations on investment instruments like these are strictly to deny the general public from access to investment tools, and further the division between the ruling and working class. If FINRA really cared about the people you would be investigating dark pools, selling order flows, and limiting the way that short sellers are allowed to manipulate the market. I dare say
Investors are already warned enough on leveraged ETFs that there is no reason for additional regulations and warnings for individual retail investors. Investors should be able to risk their hard earned money in ways they see fit for themselves. Individuals should have a right to use financial products they see fit to use in order to achieve their short term financial goals. Adding additional
Investors are already warned enough on leveraged ETFs that there is no reason for additional regulations and warnings for individual retail investors. Investors should be able to risk their hard earned money in ways they see fit for themselves. Individuals should have a right to use financial products they see fit to use in order to achieve their short term financial goals. Adding additional
As an investment professional, using these products in a responsible way with educated investors are an important to managing appropriate risk depending on market conditions. For less affluent retail investors who may not be able to use margin, options, or shorting strategies on their own, these products can give them access to strategies that can help them hedge their risk. These products are
1.) Limiting investment opportunities to those with high net worth is inherently un-American and is borderline predatory on those who would be excluded from making these investment plays.
2.) Leveraged and inverse funds are crucial to my short and long term investment strategies. Information and notices are provided with these, and should continue to be. Expanding information requirements is a
I as an investor am well informed of the risk associated with a leveraged fund but am also aware of the benefits of these as they allow me to have insurance against market swings without having to allot a large portion of my portfolio.
They have a place for a personal investor like me so I do not have to invest a larger portion of my portfolio in riskier option trading or short selling for
