I believe that any restrictions on inverse or leveraged ETFs would result in an inability for investors to hedge the risks to their portfolios that are inherent in the market.
I use such ETFs myself and find them to be a very useful tool in implementing my investment strategies.
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As an investor, it should be my prerogative to choose whatever investments without interference regardless of the consequences. I understand there are risks associated with any type of investment but to burden us with the five proposed requirements for "complex investments" is an overreach. Caveat emptor
Knowledgeable stock trading individuals should be allowed to express their freedom to take the risk they to which are comfortable in regards to inverse or leveraged trading. Dont pander to the rich and powerful who only believe they should be able to exercise their freedoms.
I do not think it is right for regulators to restrict individual investors opportunities to invest in leveraged or inverse products that have been loved by investors for a long time. Anyone can adjust the size of the investment to manage risk. Too paternalistic.
Investor's should be free to do there own research and investing in the funds of their choice. Investor's take their own risks for both losses and gains and should be free to continue to do so in all of the current funds, etf's and inverse funds.
The prospectus for these is an adequate risk advisement and discloser for leveraged and inverse ETF's. They are a meaningful part of mine and many others investment strategy and I very much oppose restricting their availability. Please do not impose regulation that impedes our access.
Leveraged ETF products are well diversified instruments that offer access to leverage at a low cost with no margin account (hence no risk of liquidation) to retail investor.
These products must remain legal.
Professor Florent Rouxelin (Finance PhD)
I am opposed to legislation that would restrict my ability to invest in those ETFs and funds which I want. People should be made aware of the risks, but then allowed to invest in whatever they want. These restrictions are unfair to average middle-class investors.
I have been investor in leveraged funds for a number of years. It should be my choise. Most option contracts expire worthless. This is not much riskier. The risks are outlined in the prosectus. Please let us invest how we want.