It’s a clever way to ensure that Edward Jones becomes part of the leveraged and inverse ETF conversation. Hey…wait a minute. We just played right into their hands! Darn you, Edward Jones!
But in all seriousness, Edward Jones is right that these ETFs aren’t meant for long-term, buy-and-hold investing. Investors need to be educated about these funds and do their own due diligence before buying. They’re unique products that need to be fully understood.
Regulators have been watching leveraged ETFs closely. Record volatility hit these ETFs last year, making them veer further from their benchmarks than they ordinarily would have. On a day-to-day basis, however, they have always worked exactly as they should.
For more stories about leveraged ETFs, visit our long-short category.