At least three brokerage firms have decided not to sell leveraged exchange traded funds a month after the Financial Industry Regulatory Authority Inc. warned brokers that they “typically are unsuitable for retail investors” who hold them longer than a day.
But that didn't stop Edward D. Jones & Co. LP of St. Louis, Ameriprise Financial Inc. of Minneapolis, and LPL Investment Holdings Inc. of Boston, from banning the sale of such ETFs within the last few weeks.
In LPL's case, the company decided to prohibit the sale of leveraged ETFs that seek more than two times the long or short performance of the target index, said spokesman Joseph Kuo.
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