Subject: File No. S7-33-11
From: Andrew W Kargacos
Affiliation: Retired Investor

September 1, 2011

-I think that the SEC should investigate the effects of leveraged ETFs on the market. It is widely assumed that the huge swings often seen at the end of the day are due to ETFs trying to equalize their price per share to the actual NAV of the stocks they own. This is very disruptive and serves no purpose in the efficient running of a marketplace.

Leveraged ETFs just make things worse. They have become the method of choice for hedge funds to use for speculation. They add unnecessary volatility and make it harder for the individual investor to make sound decisions.