In the Margins

SEC poised to move on leveraged ETFs

June 7, 2016

By The Wall Street Journal

Now that nearly $30 billion has flowed into triple-leveraged and triple-leveraged-inverse exchange-traded funds, the Securities and Exchange Commission is moving to limit them. Under an SEC rule proposed late last year, the funds could lose the advantages that stem from being regulated like mutual funds, including access to a broader group of investors. Chairman Mary Jo White said May 20 that the agency is moving ahead and will make a final decision on the rule this year. Read the original story from The Wall Street Journal.