This would be a catastrophic move for investors who are deeply invested at this point in time. What would be better is a clearer disclosure with a clear example of what can happen to leveraged ETF's along with an acknowledgment of understanding. For Example: 1) Leveraged EFT's can lose value at a rate greater than the loss of the market. (Please sign and date that you understand) Ex: 2) The triple leveraged ETF "TNA" can and often will lose value at 3-4 times the broader market. Ex: If the SP 500 only drops 5%, it is possible that the TNA ETF can drop 15% - 20%. (Please sign and date that you understand) EX: 3) The SP 500 dropped 7% from May 4th to May 9th. In that same time period the TNA lost 14 points or 27% of it's value during that same time period. (Please sign and date that you understand) 4. By signing the document you understand the risks of investing in leveraged ETF's and hold harmless ...................................
Mark Sutton Comment On Regulatory Notice 22-08
This would be a catastrophic move for investors who are deeply invested at this point in time. What would be better is a clearer disclosure with a clear example of what can happen to leveraged ETF's along with an acknowledgment of understanding. For Example: 1) Leveraged EFT's can lose value at a rate greater than the loss of the market. (Please sign and date that you understand) Ex: 2) The triple leveraged ETF "TNA" can and often will lose value at 3-4 times the broader market. Ex: If the SP 500 only drops 5%, it is possible that the TNA ETF can drop 15% - 20%. (Please sign and date that you understand) EX: 3) The SP 500 dropped 7% from May 4th to May 9th. In that same time period the TNA lost 14 points or 27% of it's value during that same time period. (Please sign and date that you understand) 4. By signing the document you understand the risks of investing in leveraged ETF's and hold harmless ...................................