It has been a matter of great satisfaction over the years to see how the cost have decreased and the options have increased or individuals who personally invest. Much of this has arisen as a result of competition in the markets and individual investor interest.
It saddens me to learn that the FINRA is seriously considering regulations that would reverse this trend by limiting investors through
Dear FINRA, First, let me introduce myself. I am Nathan Ayotte, and I am an individual investor with personal goals of acquiring a large average annual compound rate of return each year. Personally, I have been investing in a particular triple-leveraged ETF fund based on the Nasdaq-100 (Ticker: TQQQ) for 4 years, provided by an asset management company called ProShares. The fund is a fantastic,
Please do not restrict the right to invest in leveraged ETFs.
I have a PhD and have published in economics journals, so I have some expertise in this area.
Investors are currently allowed to borrow up to 50% of the value of their investments, so it is already possible to achieve leverage through these vehicles. But when the value of those investments fall it can lead to margin calls that require
I have seen warning provided by the broker website on each buy trade. In addition I had to go through a risk signup document to confirm that I understand the risk.
Above steps are good way to provide disclosure on every trade.
However if the changes are being planned to make an investor go through certain tests then I think that is excessive, and would not appreciate putting such restrictions.
I use leveraged products as part of my portfolio and I am well aware of the risks they carry. Leverage products such as UPRO and TQQQ can be used effectively as a component of a broader investment strategy and should not be restricted from public retail investors because some decide not to properly educate themselves on the risk they carry. It is important for individual citizens to have the
Comments: I am a licensed 6,7,63,65 FA, it has been 17 years since I passed my series 6 exam. I have a BS in Business and a MBA. I have almost 30 years of banking and finance experience. Leveraged ETFs are misunderstood and misevaluated by regulators and investors. If you examine the returns of leveraged ETFs that track major indices you will find that while they do not offer a superior "
Comments: As an RIA and CFP Professional with over two decades experience I can tell you that retail investors are far more experienced, savvy and informed than when I started in the business. Teenagers invest through their phones, something I never dreamed of at their age. The disclosure and consumer warnings required by leveraged products providers more than addresses the risks involved in
Hello FINRA,
These types of restrictions take away the opportunity for retail investors to engage in leveraged investing. It should be understood that by eliminating this you would take away the opportunity for investors to take on additional risk based on tolerance of the individual. Please consider that investments regulations should mitigate extreme risk. In these instances most investors
Leveraged and inverse funds should be made available to all investors. Investors should be free to invest in any security that fits their risk tolerance profile. Allowing only specific segments of the market to access these securities creates the opportunity for a wider wealth gap. By opening up investments, such as these kind, to all investors creates a level playing field. Investors should
I don't believe that it should be necessary to have any sort of 'test' or other requirements to invest in leveraged funds. While there are risks, potentially substantial, the bulk of brokers require today that you sign a statement understanding the risks of leveraged investing.
Perhaps the compromise should NOT be to move leveraged investing to non-public forms, but to
