December 17, 2015
Dear US Securities Exchange Commission,
I am writing you today to implore you to not change, restrict, or limit leverage on any ETFs. Please consider that these funds represent the most celebrated innovation on wall street in recent times. They provide a niche that does not exist anywhere else, and I beg you please do not alter this landscape by imposing new restrictions on these funds.
Investors such as myself understand these funds and rely on them for smart investing and hedging. Please dont negate our years of analysis, practice, and the understanding we have achieved in learning how to use these funds. They represent a significant portion in our strategy. In addition, these funds are certainly profitable and offer unique ways to mitigate risks quite the opposite of what the ill-informed traders say.
If your goal is to protect the uneducated or uninformed investor, there is a better way that will not punish those of us who understand what we are buying. Why not treat these funds like put and call options, where the brokerage requires access to be granted before purchases are allowed? The purpose for those access levels are the exact same – to protect inexperienced investors from high risk. If you must change something, please consider this instead of restricting the existing funds.
These funds must continue to operate as-is for those of us who understand what they are, the risk associated with them, and how to use them. Please don't punish us because of the uninformed. Thanks for your consideration.