Len Mei Comment On Regulatory Notice 22-08
Dear sirs
Thank you for letting me know your consideration of leveraged ETF. I am testing an investment strategy using leveraged ETF. According to my extensive simulation, the strategy itself does not represent higher risk. But short term wise, it can fluctuate a lot. The reward is better than the market average. Therefore, the risk/ reward ratio is low.
ETF of market does not have the risk of individual company. Leverage ETF has higher risk than the market ETF, acknowledged. Combining money management and timing, it can be profitable over the long haul.