Leveraged ETFs under the spotlight

Imperfect storm


There can be a lot of froth talked about investment products that use derivatives, although the subject has, rightfully, been in the regulatory spotlight ever since the Group of 20 nations took the helm in 2009 after the financial crisis and agreed a package of reform measures to tackle systemic risk.

So it is no surprise that the use of derivatives by ETFs has been included in the continued focus of policy-makers, who have concerns about the destabilising effect that derivative-heavy ETFs may h