NVDL: Better Safe Than Sorry

2025-12-04 10:00:21 ET

Thesis

Leveraged ETF are very high risk financial instruments, and the regulators have taken notice :

Dec 3, 2025 (Reuters) - The U.S. securities market regulator has paused the review of proposals for new highly leveraged exchange-traded funds from several fund managers and sought more clarity on the risks tied to the products.

In its warning letters sent to nine ETF providers including Direxion, ProShares and GraniteShares on Tuesday, the Securities and Exchange Commission said some funds have sought to track as much as fives times the performance of the underlying stock.

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