Michael Terry

What's Wrong with ETFs?

Leveraged ETFs allow retail investors to blow up just like the big guys. Unfortunately, an investor can make a good macro call and execute using a leveraged ETF and get demolished. This is leverage - it works for and against you. Leveraged ETFs are trading vehicles, not investments. It is funny that a retail investor has to show they are worthy of trading options, but can go out and buy a 3x ETF without showing even a cursory understanding of how they function.