“Isn’t it time regulators stopped issuing empty press releases about leveraged ETFs and started regulating? One would think so. If financial regulators really want to do something productive and meaningfully important for the investing public’s benefit, they should begin by forcing providers of short and leveraged ETFs to properly label their financial products in a uniform manner,” Ron DeLegge Reports From ETF Guide.
“To this end, Direxion Shares recently changed the name of its entire lineup of leveraged and short ETFs to reflect the word “Daily.” Without a doubt, this was a leadership move by the Boston, MA-based fund company designed to help investors clearly understand that Direxion Shares attempt to deliver DAILY leveraged and inverse returns of their underlying indexes. Thus far, Direxion has been the only ETF provider in this category to take corrective action to properly label its financial products. Isn’t it time for regulators to take preemptive action by forcing ProShares, Rydex Investments and other providers of leveraged and inverse ETFs and ETNs to insert the word “Daily” into all of their product names?” DeLegge Reports.
“How much longer will financial regulators allow the use of mislabeled financial products? Aren’t regulators to blame, at least in part, for allowing such mislabeled financial products to exist in the first place? In this regard, uniformity in how products are named should become an immediate priority,” DeLegge Reports.
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