“I have been on the road meeting hundreds and hundreds of advisors and investors and there is a very passionate and narrow universe for leveraged and inverse ETFs,” Steinberg said.
“People are looking for a scapegoat for the volatility,” Steinberg added in a separate Reuters story published Wednesday.
Laurence Fink, CEO of iShares ETF manager BlackRock, said leveraged ETFs are “toxic,” according to the report.
Max Chen contributed to this article.
For more information on leveraged funds, visit our leveraged ETFs category.