Leveraged etfs are a great financial tool that bridge the gap between risky options and buying non leveraged funds. For many retail investors we use these in ways that are not risky and hedge our risk. Removing them only harms retail traders as a whole forcing them to use other riskier strategies.
I am against the restriction limiting investment in leveraged and inverse funds. Education of risks of investing in these instruments is needed, but not the ability to buy/ sell these instruments. Limiting the securities could potentially have the unintended consequence of reducing liquidity leading to distorted pricing and adding to volatility.
Please reconsider your position. Thank you.
(a) Leveraged and inverse funds allow small retail investor like me to hedge/ protect against the massive swing we are having in the market due to the tremendous leverage available to hedge/ institutional funds
(b) We understand that there are fees/ costs and risks associated with these leverage and inverse funds, but it is better to have them, than not!
FINRA:
I oppose restrictions to my right to invest I should be able to choose the public investments that is right for me. Public investments should be available to all not just the privileged ones. I am capable of understanding leveraged and inverse funds and their risks. Leverage and inverse funds is a way I use to enhance returns.
Regards,
Yamil
Stop another power grab by big banks! Position sizing and trade stops are the main ways to reduce risk. Where is your support on those tools?
All the regulations will do is to give exclusive access to special entities, that could enrich themselves or re-sell the same investments as a "service" to individual investors.
No thanks.
As an investor, I understand the risk associated with leveraged and inverse ETFs. Leveraged and inverse funds are important for my investment strategy. These funds are a small portion of my portfolio. I also use them to hedge my investments and to seek enhanced returns. As an investor I should be able to choose the investments that are right for me and my family.
Please dont regulate my ability to purchase leveraged funds. I currently own pros are funds and am aware of risks associated with leveraged funds. I watch them closely and have been successful in building my financial portfolio. Public investments should be a available to all without regulation. Not just the privileged
Comments: As a tool, in the hands of a competent advisor, a point which cannot be stressed enough, inverse funds can be a value component to the management the risk in a portfolio. For taxable accounts, an inverse can also assist with the management of taxes. For IRAs, where shorting an index is not permitted, an inverse can provide for a closely approximated approach.
Regulators should not be able to prevent me or force me to take tests before I can invest in public securities like TQQQ.
I understand about investor funds and their risk. The above
fund has allowed me to easily increase my retirement funds, so
do not take that away from me.
We, not regulators should be able to choose what we invest in. No special process such as an exam should be required. We understand and trade at our own risk. No test can change that. Leveraged & inverse funds are needed in my portfolio. They require less cash and are not subject to earnings volatility or principle changes.
