leveraged etfs

Regulator Continues to Battle Unsuitable Leveraged ETFs

The securities industry self-regulator, FINRA, has once again warned broker-dealers and investors over its unsuitable sales of leveraged and inverse ETFs. Over the past few years, ever since these sophisticated products rose to prominence, FINRA has repeatedly issued regulatory notices and investor alerts about the perils of investing in leveraged ETFs. The agency has also fined numerous broker-dealers and individual brokers for poor sales practices and supervision of leveraged ETFs.

Non Traditional ETFs Bury Gold Rushing Broker and Customers

Leveraged ETFs are one form of what are called nontraditional ETFs (the other form being inverse ETFs) which track a market benchmark, deliver multiples of return on that benchmark, and are designed to be traded on a single day only.