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Should Anyone Be Allowed to Buy Leveraged ETFs?
['Emile Hallez']
The Daily Upside
Leveraged funds, including those focused on single stocks, have exploded in number and popularity in recent years.
The op-ed piece followed disastrous episodes of South Korean leveraged ETFs crashing as chip-maker stocks fell.
Newer restrictions in that country have reportedly driven at least some traders to use US leveraged products.
That could also include a point-of-sale message showing how a leveraged fund’s returns can diverge from those of individual stocks.
“They’re probably inappropriate for retail investors, but they’re being heavily marketed to retail investors,” he said.