I am a high net worth individual. I use the inverse bear index's across a number of categories to hedge my portfolio during periods of uncertainty without using complex option strategies - I have found options to be far more susceptible to losses than reverse indexs. Using options as a hedge involves two variables - the strategy and timing both need to be right. Reverse Indexs remove the need to manage the timing but provide the same optionality. I find the reverse ETF's to be an incredibly valuable tool, and I would prefer my access and ability to trade them remain unfettered.
Simon Assaad Comment On Regulatory Notice 22-08
I am a high net worth individual. I use the inverse bear index's across a number of categories to hedge my portfolio during periods of uncertainty without using complex option strategies - I have found options to be far more susceptible to losses than reverse indexs. Using options as a hedge involves two variables - the strategy and timing both need to be right. Reverse Indexs remove the need to manage the timing but provide the same optionality. I find the reverse ETF's to be an incredibly valuable tool, and I would prefer my access and ability to trade them remain unfettered.