News | 08.02.19
Leveraged and Inverse ETFs May Be Too Risky to Sell, Says State Regulator Group
The North American Securities Administrators Association is alerting broker-dealers that they should carefully consider whether to permit purchases of leverage and inverse exchange-traded funds (ETFs) in retail customer accounts. In a report, the organization said that the products can present greater risks to investors than do traditional ETFs due to their complexity. The report recommends tailored supervisory procedures be established for firms that allow transactions to address the heightened and specific risks associated with these products.
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