Edward Jones & Co. is no longer “selling” these funds, as some concerns have arisen over whether leveraged and inverse ETFs are appropriate for investors. Daisy Maxey for The Wall Street Journal reports that the logic behind the move is Edward Jones’ feeling that these ETFs are just not intended or appropriate for buy-and-hold investors.
One analyst with the firm pointed out that not all ETFs are created equal – that’s 100% true.
Are we off base in wondering whether this is just a bit of a PR ploy? After all, Edward Jones is known for gathering assets and employing a simple long-term buy-and-hold money management strategy. They’ve never been known for dabbling in alternative investment strategies.
We suspect it’s a bit of wanting to appear responsible to investors by eliminating the controversial products, though they have no use for them to begin with. What’s next – will they announce that they’re not buying pork belly futures?