Finra to brokers: Disclose risk in leveraged ETFs to investors
Daisy Maxey from The Wall Street Journal wrote and article about Finra’s warning about the risks involved with leveraged funds – particularly ETF funds. It appears that some investors are not completely familiar with the risks involved with the investments and certainly should have a more complete picture.
We believe that The Financial Regulatory Authority (FINRA) is taking the right approach by reminding brokers and registered investment advisers about the fiduciary responsibilities when offering or suggesting investments in ETFs and funds that offer leverage. While we are not suggesting that these funds shouldn’t be purchased, investors should understand the risk/reward scenarios when investing a portion of their assets and in accordance with their specific circumstances.
We would suggest a review of your portfolio with your financial advisers. For the do-it-yourself investor check with the funds and look through the prospectus to more fully understand the risks involved.
The complete article from the Journal can be found here: http://bit.ly/Rc3TF
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