Subject: N/A
From: Michael Parks

Mar. 17, 2020

Comment on SEC Proposed Rule #S7-24-15: 

I understand the characteristics and risks of L&I Funds. I monitor my L&I Fund positions daily via Yahoo Finance or Bloomberg. In my opinion on the notion that my brokerage firm should have the right to decide whether I am sufficiently “capable” to assess risk, or to disqualify me from trading L&I Funds or any other publicly offered investment is an insult and Ludacris to me directly. I am well aware of ETFs and how they work, and their functions. ETF’s are considered to be low-risk investments because they are low-cost and hold a basket of stocks or other securities, increasing diversification. For me, ETFs represent an ideal type of asset with which to build a diversified portfolio which is what I do. I can have an investment that makes a great return, but if I lose those gains because of high fees then it defeats the whole purpose. The low fees associated with ETFs compared to mutual funds are another reason why I invested in them. I understand that ETFs can be bought and sold on the stock market like any other stock, and it’s price changes throughout the day. I understand this differs from a mutual fund which is generally bought through a mutual fund firm, and whose value or NAV is determined at the end of the trading day. It goes without saying that having my investments spread over multiple areas helps guard my savings if one area has a meltdown. I wouldn’t have wanted to be 100% invested in tech stocks when the tech bubble burst in 2001 right, or the housing in 2008? There are now ETFs for almost every market index and sector you can think of. US, International, BRIC, small-cap, large-cap, growth, value, etc…. There are also industry-based ETFs including real estate, biotech, financial, oil and gas, etc…. Finally, there are ETFs that cover other asset classes like fixed income (bonds). How diversified I want to be is virtually limitless. I do not , do you think it is likely that I fail to understand the risks of L&I Funds. Please don’t hesitate to call or email with any other questions. 
Michael Scott Parks