February 19, 2020
This is a terrible rule. As a human being I should be allowed to purchase whatever funds I wish at a price I have agreed to with the seller without having to have the SEC or any government agency interfere.
As we know from the empirical data: margin trading improves lifetime returns. Leveraged funds work in a similar method: they allow investor returns to be improved over a given time period.
There is no reason that we should restrict what securities citizens can purchase based on government say so. The government's job is not to tell people what they can and cannot do with their personal money. We already paid our taxes and the government does what it wants with those there is no reason the government needs to do what it wants with the rest of our money.
This is an even worse proposition than the "Accredited Investor" rule which prevents people who are not already wealthy from realizing the higher returns generated by non-publicly traded companies essentially creating a system where only the wealthy get to enjoy increased returns.
Leveraged ETFs are an inexpensive way for smaller investors to realize increased returns that were previously only available (due to government regulations) to wealthy funds and HNW individuals. Do we really think it is a good thing to handicap those who are just starting to build their wealth simply because they weren't born with a trust fund? To limit returns for the average American and then make them prove to the government that they are worthy to buy certain securities is absolutely against the fundamental principles that The USA was built on. This rule is anti-American and will further erode the ability to realize the American dream.