These types of funds are crucial to retirement accounts that are not eligible for margin. Inverse ETF's give you the ability to protect yourself from downside risk, which is important because one is not able to put on any short positions in a retirement account.... and sometimes regular cash accounts too!
Inverse and leveraged ETF's are in all of my portfolios, because they keep me protected in the case of disaster. It's comforting knowing that they are there. On the flip side, I would be freaking out if I could not keep short side ETF's in my portfolio right now!
In my opinion, these are part of a free market and should be left alone. They are not that big of a deal, especially if kept in proportionately small amounts. People should be allowed to freely trade and hold these without any required steps (outside maybe a checkbox saying you understand).
Also, net worth should not make any difference when trying to protect your account to downside risks with etf's such as SQQQ or SDOW. This is something that is important to any portfolio, whether $100 or $1,000,000.
Alan Baglini Comment On Regulatory Notice 22-08
These types of funds are crucial to retirement accounts that are not eligible for margin. Inverse ETF's give you the ability to protect yourself from downside risk, which is important because one is not able to put on any short positions in a retirement account.... and sometimes regular cash accounts too!
Inverse and leveraged ETF's are in all of my portfolios, because they keep me protected in the case of disaster. It's comforting knowing that they are there. On the flip side, I would be freaking out if I could not keep short side ETF's in my portfolio right now!
In my opinion, these are part of a free market and should be left alone. They are not that big of a deal, especially if kept in proportionately small amounts. People should be allowed to freely trade and hold these without any required steps (outside maybe a checkbox saying you understand).
Also, net worth should not make any difference when trying to protect your account to downside risks with etf's such as SQQQ or SDOW. This is something that is important to any portfolio, whether $100 or $1,000,000.