SEC proposal to restrict 2x/3x ETFs re Proshares note

KCalhoun said:
got this recently:

https://www.proshares.com/important_notice.pdf

https://www.fundcomments.com/

thoughts? i like trading these
More...

Revenooers will do what they're gonna do.... often trying to "protect investors from themselves".. assuming we are stupid and innatentive.

Until they decide on changes, if any, keep trading them as you will... always congnizant of the "leverage factor".

Keep in mind that many brokerage houses will limit your ability to purchase a "leveraged ETF with margined funds". IOW.... they don't want you being leveraged 2x with margin money on a 3x leveraged ETF. If you don't know what you're doing, you could possibly end up leveraged 6x to the market... not a good idea regardless of how "smart you think you are".
 
Last edited:
Not going to be missed...if you want a larger position, simply buy more of the ETF or go long options. If you can't, then you probably shouldn't be trading with leverage anyway. Only valuable use I see for the inverse ETFs would be to short in an IRA / 401k. If anything, eliminating the leveraged ETFs should make the market more stable by reducing overall leverage. But I doubt it will have much of an effect.
 
I think leveraged ETFs are nice instruments for swing traders.

But it doesn't surprise me that the data apparently shows that most people lose money trading them.

Perhaps the feds should ban trading equities altogether since most people lose money doing it? It would be in the public interest :)
 
Bet this is coming from the greedy thugs at the CME that would like to knock out any competition. A noob can get insane levels of leverage through most brokers including in IRA's via futures or options.

If anything it's the ETNs that may need more oversight - not ETFs.
 
You must log in or register to reply here.
Back
Top