Leveraging on lessons learned

  As ETF assets continued to soar during the summer months, a part of the ETF landscape came under fire in the US amid controversy surrounding certain leveraged and inverse funds. Losses suffered by investors of these particular products drew negative attention, which culminated in a notice issued by the Financial Industry Regulatory Authority (Finra). The regulatory body reminded advisers about product suitability obligations and highlighted some of the risks entailed by inverse and leveraged ETFs, noting these funds are not typically suitable for retail investors who plan to hold them ...