German investors use ETF products as "short-term investment tools"

German investors use ETF products as "short-term investment tools"

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Informed German investors are using leveraged exchange-traded funds (ETFs) as short-term investment tools rather than as long-term buy and hold investments, a recent study reports. The report, commissioned by Deutsche Bank and carried out by Germany's Constance University of Applied Sciences, analysed the use of short ETFs - also known as inverse ETFs - and leveraged ETFs in Germany, Europe's biggest ETF market. In June 2009, the US Financial Industry Regulatory Authority (Finra) warned that