Limiting my ability to buy leveraged and inverse ETFs would impair my ability to hedge risks efficiently and dynamically. It would damage the risk-return ratio of my holdings and impair the liquidity of my portfolio. I am against this rule. Efficient portfolio management should not be restricted, for the well-being of investors and the market as a whole.
I should be able to choose the public investments that are right for me. Public investments should be available to all of the public not just the privileged. I should not have to pass a test to invest in public securities like leveraged and inverse funds. Leveraged and inverse funds are important for me to be able reduce risk in my investment portfolio.
These regulations would be taking a valuable tool away from investors. They would impinge on our ability to hedge our accounts against loss. We would need to become short sellers, which is much more risky and unavailable in retirement accounts. Your proposed rules would increase market risk.
It should be the responsibility of the individual investor to determine the risk of using these particular products. The notion that somehow some regulation can "save" investors from making bad investment decisions is an illusion. Investors should have the right to invest as they see fit without any intrusion by any third party, government or otherwise.
I believe that regulating my right to invest in what might be of benefit one day to myself and my family, is tantamount to disallowing me to better myself, or even prosper. If I feel I am ready and willing to absorb the risk of losing money to take a chance on possibly making money...then I should at least be allowed to do so!
I oppose these proposed regulations because I already have full access to information about the risks of inverse and leveraged funds and further federal gatekeeping is not needed or welcome. Especially in markets that reflect the heavy hand of the Federal Reserve investors ought not be barred from protecting their own financial interests with a full range of investment tools.
Leveraged index funds are similar to buying individual stock in terms of risk. If leveraged index funds are taken away, then investing in individual stocks should be as well. Members of the public do not have to go through any special procedures to buy publicly traded stock, nor should they have to for leveraged index funds.
As long as the investment and brokers involved outline the risks, that is all the SEC should demand. Freedom for investment key to capitalistic system and should also include all International investments including China whom we must compete with and not restrict- restriction produces artificial competition which never works and only weakens our country!
When you're a small investor who doesn't want to put an excessive amount of money at risk, a leveraged index fund is an ideal choice. With a stop-loss in place and the diversity of the index ETF, the downside is tolerable, the upside has been rewarding. There is such a thing and over-regulation. Please leave us alone, and concentrate instead on keeping everybody honest.
Dear Sir,
I have good understanding of leveraged and inverse funds and their associated risks. I think leveraged funds like TQQQ are well suited for my short term and long term investment strategies. And these are available to all of the public and not just the privileged.
Therefore, I oppose restrictions my right to invest in leveraged & inverse funds.