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To: Sr K who wrote (8724)12/28/2009 1:30:09 PM
From: Feraldo  Respond to of 20435
 
Additionally FINRA issued a guidance statement saying leveraged ETFs (and why they would call them ETFs is beyond me because if it is leveraged it becomes a note and thus an ETN) are not suitable for retirement accounts unless managed by a professional. Some brokerages, such as Principal where my wife's 401k unfortunately resides, took the guidance (not a rule) and decided to disallow leveraged anything in any of their retirement accounts. Not all brokerages have instituted such a policy, as it was just a guidance, but the way things are going this will likely soon become a rule.



To: Sr K who wrote (8724)12/28/2009 2:53:44 PM
From: SARMAN  Read Replies (1) | Respond to of 20435
 
Fair enough, we can limit the amount of dollars allocated to ETFs, like we do when shorting. Correct me if I am wrong, ETFs are traded on the exchange thus they can be considered as a stock pick.