As a professional in the investment industry, I strongly feel the disclosures regarding investment performance and risk are well communicated and transparent regarding leveraged ETFs. It is very simple to understand those products that have 2x or 3x leveraged being specified as DAILY performance.
To limit the ability to invest in those products or to remove them completely would create great price distortion, as well as liquidity problems for existing investors such as myself.
I am a CFA chartered member, I hold the industry to the highest standard. I have invested in leveraged ETFs for over a decade and strongly believe the products are designed and implemented in a safe and sound manner.
Please reconsider enforcing new regulations on these investment vehicles as they will do more harm to existing investors than good for the capital markets.
Joseph Chou Comment On Regulatory Notice 22-08
To FINRA,
As a professional in the investment industry, I strongly feel the disclosures regarding investment performance and risk are well communicated and transparent regarding leveraged ETFs. It is very simple to understand those products that have 2x or 3x leveraged being specified as DAILY performance.
To limit the ability to invest in those products or to remove them completely would create great price distortion, as well as liquidity problems for existing investors such as myself.
I am a CFA chartered member, I hold the industry to the highest standard. I have invested in leveraged ETFs for over a decade and strongly believe the products are designed and implemented in a safe and sound manner.
Please reconsider enforcing new regulations on these investment vehicles as they will do more harm to existing investors than good for the capital markets.
Sincerely,
Joseph Chou, CFA