You made the bed, and now you have to lie in it. That's the message from the court to disgruntled leveraged ETF investors, according to an article
by Ian Salisbuy in the Wall Street Journal
That message was broadcast loud and clear when a federal judge dismissed
a class action suit against ProShares
earlier this month, Salisbury writes. The suit had been filed by investors who claim they were mislead by the firm's marketing.
story includes opinions from several legal experts, most of whom seem to agree: judges are unlikely to side with investors just because the company had poor results.
What could this mean for leveraged ETFs? Salisbury notes that this despite ProShares' winning the case, a mix of bad press and bad returns could spell trouble for these funds. He notes that there has been roughly no growth in leveraged ETF AUM since 2008, while the ETF industry in general has doubled.
For more information on the case and the potential implications for leveraged ETFs, read the original story here
Stay ahead of the news ... Sign up for our email alerts now