Reasons Leveraged ETFs Should Not Be Banned

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July 30, 2009 10:40am ETF BASIC NEWS

bannedCNBC aired a segment this morning addressing the stirr FINRA has caused by warning  financial brokers and advisers about their responsibilities to explain to retail investors how these inverse and leveraged ETF’s are difficult to understand and

are not meant to be held for long periods of time. Firms are scurrying to cover themselves in the fear that they could be held accountable for investor mistakes. With a few, even closing to not offer the sale of leveraged ETFs altogether, even despite FINRA themselves stating that there are instances where leveraged ETFs can be used for more than one day. Should leveraged ETFs be banned or are they getting an undeserved bad rap? Tom Lydon, joins the CNBC crew to share his insight on the topic.

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