The is an addendum to a previous comment I made. Prohibiting inverse funds would remove people's ability to hedge against down markets in a cost effective manner. The expense ratios of these inverse and leveraged inverse funds are much more manageable than taking out margin loans and opening oneself up to margin calls. The liquidity and affordability of these fund should not and cannot be limited to only a select few.
David Wolfgang Comment On Regulatory Notice 22-08
The is an addendum to a previous comment I made. Prohibiting inverse funds would remove people's ability to hedge against down markets in a cost effective manner. The expense ratios of these inverse and leveraged inverse funds are much more manageable than taking out margin loans and opening oneself up to margin calls. The liquidity and affordability of these fund should not and cannot be limited to only a select few.