January 29, 2020
I understand that the SEC is considering putting additional requirements on leveraged and inverse funds. I think this is bad for investors who are saavy enough to hedge their portfolios particularly with inverse funds. These funds represent a cheap way for all investors to hedge their positions should they want to do so. Much cheaper than buying puts or calls and fronting alot of money over a period of time which the investor may or maynot get back due to time decay of the options.
Secondly, leveraged funds offer an investor an enhanced vehicle to bet on a particular sector of the market should they chose to do so. The risks are outlined well under current disclosures and I fail to see the concern of the SEC. Like inverse funds these vehicles offer the investor something other than the expense associated with the Options market.