The controversy over leveraged exchange traded funds (ETFs) seems to continue to grow. The latest name to jump into the fray is Fidelity, which has warned customers that the products are complex.
Fidelity is just the latest in a long line. Some of the largest investment advisory firms, like Ameriprise Financial (AMP), Raymond James (RJF) and UBS (UBS) have curtailed client activity in them or are completely getting their clients out of them.
Michael Comeau of Minyanville states that this is bogus because all it is doing is relieving investors and their advisors of personal responsibility. Comeau states that leveraged ETFs have become a scapegoat for investors’ losses and frustration with the market.