Wells Fargo Advisors
and Morgan Stanley Smith Barney
have placed leveraged ETFs under the microscope, The MFWire
"Currently, Wells Fargo Advisors is reviewing its policy with regard to non-traditional ETFs, and will be communicating any changes to our financial advisors in advance of any changes," Wells Fargo spokeswoman Teresa Dougherty
said in an e-mailed statement to The MFWire
Morgan Stanley Smith Barney Christy Pollak told The MFWire
that "the issue is under review".
On the other hand, Oppenheimer & Co
seems to be continuing to offer inverse/leveraged products for the time being. However, the sales will be accompanied by a certain degree of investor caution, with the firm having released an educational research industry update late last month titled Deeper Look: Leveraged and Inverse Exchange-Traded Funds
reported Monday that UBS
had decided to halt sales of leveraged and inverse funds Last week, LPL restricted the sale of leveraged funds to those that don't exceed double long or double short positions, and Ameriprise and Edward Jones both made a sweeping ban of all leveraged/inverse ETFs.
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