I oppose any proposal to limit my freedom to invest in leveraged and/or inverse funds. I fully understand these investments and use them to hedge my portfolio risks. I do not see any need for forcing me to go through a special process in order to trade these instruments.
It's on the diligence of the investor to know what they are investing in. If you believe buying and selling leveraged ETF's is too risky for investors what about regular stocks? Should retail investors take tests to see if they can trade public securities? The market is speculation, there is always risk.
I should have the right to choose public investments. Regulators do not need to impose any measures to test my knowledge of leveraged and inverse funds and the risks involved. I use these investments to protect me and to seek enhanced returns as a limited part of my overall investment portfolio.
Dear Regulators, I, not you, should choose whether I can invest in leveraged and inverse ETFs. additionally, I should not have to take and/or pass any tests to be able to invest in leveraged and inverse ETFs. I am fully aware of the risks associated with investing in leveraged and inverse ETFs.
I am vehemently opposed to limiting current investment vehicles. Better attention to be paid to existing companies who are not reporting accurately (ex: Twitter and TSLA). Anyone using leveraged ETF's are educated enough to understand potential risks. The same for any listed stock on any exchange.
A retail investor such as myself require access to these types of investments to hedge against risk. During the 2022 downturn they have protected me to successfully hedge my accounts. To test knowledge or require accredited investor status reduces liquidity and advances the disparity between economic classes.
I am an educated investor and aware of the potential risks of utilizing leveraged and inverse funds. To take away these tools from the average investor will significantly impact their ability to compete with the pros. Please do not continue down this regulatory path. This is not going to accomplish a positive goal for the general public.
This is a violation of the free market principals. Risk assessment and tolerance is an INDIVIDUAL human characteristic, and therefore this approach will not work. Furthermore, I shouldn't have to go through any special process like passing a test before I can invest in public securities, like leveraged and inverse funds.
The NASD Office of General Counsel Regulatory Policy and Oversight (OGC) publishes the Disciplinary Update to provide registered representatives with a summary sampling of recent disciplinary actions involving misconduct by registered representatives. The sample of disciplinary actions includes settled matters and decisions in litigated cases (National Adjudicatory Council (NAC) decisions and decisions of the Securities and Exchange Commission in NASD cases).
Comments: As an investor with knowledge of the risks associated with L&I ETFs, I don't think our choices should be limited due to the lack of education of the few.
In this volatile market, we need all the choices available to us to succeed.
My brokerage firm already has education and warnings on these products.