March 21, 2016
Ruling S7-24-15 Ruling on Leveraged Etfs
Please do NOT withdraw the ability to use double 2x leveraged Etfs in IRA accounts nor attach K-1 tax implications to them.
My husband and I rely heavily on these leveraged Etfs for our IRA retirement account. We are NOT sophisticated investors. Our broker, Fidelity Investments, informed us of the risks of using leveraged Etfs when we initially bought these products. Despite the January 2016 downturn in the stock market and the fact that we were heavily invested in triple leverage, we knew how to protect ourselves and did so simply because it was our responsibility to know what we were invested in and it was very easy to educate ourselves about these products.
It would be grossly unfair to penalize retails investors by preventing us from using leveraged Etfs in our IRA accounts simply because some investors neglect their responsibility to educate themselves.
Please do NOT withdraw the ability to use double 2x leveraged Etfs in IRA accounts or attach K-1 tax implications to them.
My family would be severely impacted by such a ruling and anxiously await the forthcoming decision.