Page 11 - Demo
P. 11

“These are sophisticated trading tools,” Hawkins says. “Our products specifically said ‘2X Bear’ and ‘2X Bull’ in the name. Every single piece of documentation says ‘leveraged’ in it.”
Documentation is important, Straus notes: in 2012, a U.S. district court dismissed a class-action lawsuit against ProShares Group
alleging that the company had failed to adequately disclose the risks of investing in its leveraged ETFs.
“It was extremely well-disclosed that the leverage was reset daily and that those funds were not designed for any form of index-tracking targeted outcome for any period longer than one day,” Straus says.
Hawkins adds that Horizons “can’t control” who buys its leveraged products: “All we can do is try to put as much information in investors’ hands as we possibly can so that they can make an educated decision with respect to their investment dollars.”
— Greg Dalgetty
   Investment Executive’s ETF Guide 2020 11

   9   10   11   12   13