Non-Traditional ETFs Worry Regulators, Advisers
Improper Use of Leveraged and Inverse ETFs Can Have Shocking Outcomes
October 12, 2009
As exchange-traded funds continue to grow in scope and popularity, investment experts warn that some products, such as leveraged and inverse ETFs, may be too dangerous for all but the most experienced hands. 'People get lazy and they think an ETF is an ETF,' said Paul Schatz, president and CEO of the Woodbridge, Conn.-based registered investment advisor Heritage Capital LLC. 'There are inherent problems with every product, and some products have way too much firepower for the average person to use.'
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