As a mathematician working in the area of mathematical finance with an in-depth understanding of the complexities of leveraged ETFs, I am very familiar with how they work. In my experience, the companies that manage these funds, such as Direxion, are very clear and transparent about the workings and risks associated with leveraged ETFs. In my opinion there should not be any barriers to market
I oppose the proposed rule as I believe it is over reaching and unnecessary. Leveraged and inverse funds are not that complex. Betting at the horse races and on sports teams would be a better target for regulation. And inverse and leveraged funds offer an important option for investors when conditions warrant the risk. I would hate to see complex rules and restrictions placed on this investment
I would like to freely be able to invest my hard working earned money in any trust that I find suitable to my and my familys future. If Im taking a risk I would like to be the responsible person to be able judge my actions based on that without the interference of any other entities dictating to me where to invest.
I believe that inverse ETFs, when used properly, are an economical and relatively low risk way to hedge equity portfolios. I have avoided serious losses in the current bear market due to the availability of these products. Restriction of these products would be a disservice to smaller investors who wish to avoid the cost of options and the extreme leverage of the futures markets.
How I invest is none of your concern, nor is it any of your business. Why should anyone wanting to invest have to show a high net worth or read any material regarding investments? That is absolutely ridiculous. Stop trying to keep the little man down. If I choose to take a risk, that is my right in the pursuit of happiness.
I shouldn't have to go through any special process
like passing a test before you can invest in public securities,
like leveraged and inverse funds. I am
capable of understanding leveraged and inverse funds
and their risks. I do not
need these measures imposed on me. Also, Leveraged and inverse funds are important to your
investment strategies.
I'm a financial professional fully licensed with a Series 7 and 24. I utilize leveraged funds not only in my retirement account but also in my retail account. I utilize leveraged inverse bond funds, biotech funds and QQQ etfs. There should be no limit on these funds, with the exception of 300+ % leveraged funds. That's when risk becomes unmanageable in my opinion.
I should be able to choose the public investments that are right for me and my family.
I should not have to go through any special process before I can invest in public securities, like leveraged and inverse funds. I am completely capable of understanding leveraged and inverse funds and their risks.
I do not need regulators to impose these measures upon me.
As long as the prospectus of the ETF is documented and the fund manager is able to maintain the daily tracking detailed, there should not be additional regulation upon public securities. Having access to specialized products allows knowledgeable investors to properly allocate to their portfolios outside of options or futures, which require higher risk management capacities in comparison to
Individuals have a right to invest their money where and how they see fit. I do not have an issue with brokers issuing notices and warnings to investors before they invest in risky securities. However many of us have done their due diligence when it comes to research and risk analysis. The role of regulators in this particular case should be to INFORM, not restrict.