It is very important for an informed and risk aware investor to take calculated risk. While leveraged funds are riskier than traditional stocks, funds, etc, none-the-less, they provide a very crucial diversification alpha to smart investors.
I strongly urge SEC, regulators, Congress, and everyone else involved in restricting the access to leveraged ETFs in retirement accounts.
Instead of creating new regulations that impact individual investors you should focus on making investor education easily accessible. Having a digital library full of the information you want us to know that is easily accessible and having brokers include a link to it within their platforms should be more than sufficient for anyone who wants to learn.
Investing in leveraged ETFs is a useful tool for retail investors and has clearly communicated risks and returns. I used them in my early investing days when I was very open to risk and as I have aged I phased out of them. Other people should also have the opportunity to take high risk high reward actions in an informed way.
Why do regulators think US citizens are incapable of making their own informed decisions? We should not limit the ability of people to decide how to invest their own money whether it is leveraged funds or any other funds for that matter. We already have access to the prospectuses and can determine what is appropriate for our risk appetite.
Comments:leveraged ETFs are investments through legitimate brokers and are described in exquisite detail in their literature. Warnings pop up whenever trying to execute a trade. That should be enough for any investor to be informed completely. Any more is an example of government getting into what should be my private affaires. Please leave the leveraged products alone. Thank You
I am fully capable of determining my own level of risk with investing and frankly find it insulting that the government would presume to limit my choices.
Instead of telling members of the public what they can do with their own money, perhaps spend more time reviewing what elected officials do with their money when combined with private information.
Summary
FINRA has received an increasing number of reports regarding customer account takeover (ATO) incidents, which involve bad actors using compromised customer information, such as login credentials (i.e., username and password), to gain unauthorized entry to customers’ online brokerage accounts.
To help firms prevent, detect and respond to such attacks, FINRA recently organized roundtable
Restricting trading of leverage products is unwarranted. The brokerage companies give you ample information and disclosures about the risks. This type of product is fast moving and should be monitored throughout the day. It is a short-term trade. Overnight positions are extremely dangerous. A product that offers 2X or 3X the underlying index is not complicated. It merely has higher risk reward
I oppose any restrictions that may unnecessarily eliminate or appropriate restrictions on investments being considered under SEC Proposed Rule #S7-24-15 to the extent that it provides a platform for intuitions to manipulate or gain advantage over retail investors. Free market capitalism should not be compromised by individuals fears or inability to educate oneself in an era of communication and
I am absolutely opposed to regulators choosing what I can/can't invest in for me. These measures do not need to be imposed on the public for their protection - it is a simple overreach of authority/power in an area it is not needed. Make educational materials readily available with updated information that allows people to make educated decisions and treat Americans like free adults instead
