Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Shapiro Eyes Leveraged ETFs Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, April 13, 2010

Shapiro Eyes Leveraged ETFs

by: Daniel Tovrov

In the Tuesday issue of the Wall Street Journal, John Spence notes that the previously announced SEC's derivatives investigation could reduce leveraged ETFs' appeal among investors and traders.

Many leveraged and actively-managed exchange-traded funds heavily use swaps and other derivative tools, which worries the commission. ProShares, Direxion and Rydex SGI are all big players in the indexing space.

"It's appropriate to engage in a more thorough review of the use of derivatives by ETFs and mutual funds given the questions surrounding the risks associated with the derivative instruments underlying many funds," stated SEC chairman Mary Schapiro.

There were 151 U.S. leveraged and inverse ETFs with total assets of $29.9 billion, as of April 1, taking up a 4 percent market share, according to Morgan Stanley.

Direxion marketing director Andy O'Rourke commented to The Journal that his firm doesn't mind the SEC's moves and hopes the commission acts swiftly, saying "of course regulators should make sure they perform due diligence so they're comfortable with the investment products in the marketplace." The SEC revealed its plan for a review of derivatives-based funds on March 26. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use