I am a retired insurance business owner and am solely responsible for investing and trading my retirement funds. I use Inverse and Leveraged funds to hedge my portfolio insurance to protect, preserve and grow my portfolio. As a small investor it is vital for me to have use of these tools to use as I see fit without interference from any other authority(s). I know my personal situation, my
I oppose having restrictions placed on leveraged ETF;s for the following reasons: 1. There are many individual securities (stocks and funds) that are more volatile than leveraged ETFs 2, Volatility is not risk and more meaningful is the trend of its moving average. e. Volatility provide investors an opportunity to achieve their objective in a shorter time period. Rather than impose restrictions
As is often the case in government policy, the motivations of this seem good. However, limiting investments until someone has a liquid net worth of 1M or other limit has proven suboptimal. These specialized products are risk management tools - perhaps used to hedge a portfolio without selling and realizing gains, or taking advantage of markets that would otherwise be unavailable without a large
In a fair and open market there should be transparency and a level playing field for all investors. Right now, there is a massive deficit in access to information, trade speed, preferential terms and types of trades, and pay-to-play investing that heavily favors institutional investors over retail investors. Additionally, institutional investors engage in relationship-based, illegal, or near-
Inverted ETFs are the #1 way that allows retail investors the ability to protect their portfolio against the declines in the general stock market or within industries. Once again, taking a tool away that actually gives the little guy an even stage with the big players. Then you wonder why you have situations like meme investing... Leveraged ETFs allow me to take protective positions without
I resent the thought that I cannot choose for myself what investment products work best for me. And I find it insulting, manipulative and corrupt that only those with privilege (high net worth investors) would be allowed to use these trading vehicles. I use these types of vehicles to hedge positions as well as to take advantage of down movements, since I can not use options in my IRA account. I
LINGMUYI CAHello, regulators! We invest in stocks and all public investments, including ETFs, based on a portfolio of shareholders using surplus funds from the company's operations. Thanks for the risk tips for leveraged and inverse funds. Before investing, carefully evaluate the financial situation and put the company in a low-risk capital structure; at the same time, fully understand the
As an investor, it is my responsibility to understand, research and select investments, along with the ultimate risks & rewards. This is the same I would expect of anyone who is investing.
For leveraged funds, it is a critical part of my broad investment strategy, again knowing the full risks, up & down. All fund prospectus's provides clear picture of the
Response to the Financial Industry Regulatory Authority (FINRA) proposed rules on leveraged ETFs Leveraged ETFs may be volatile but it is not more volatile than many individual securities. In addition to uncertainties with individual stocks, Investors are able to allocate the use of leveraged ETFs to diverse their assets to fit their risk tolerance against the effects of a volatile and uncertain
Sir/Madam,
Please do not restrict my ability to make investments in the stock market however I choose to make them. By limiting my access to inverse and leveraged funds, you are effectively reducing my ability to improve the outlook for my retirement future. I am aware of the risks involved, but these risks are, in my mind, no greater than the risk already inherent in the market itself, but with
