The Leveraged Lottery: A Cautionary Tale of Financial Innovation The world of exchange traded funds (ETFs) has long been a hub for financial innovation, offering investors a wide range of products to suit every taste and risk tolerance.
However, in recent months, the Securities and Exchange Commission (SEC) has cast a skeptical eye over some ETF issuers' more adventurous offerings.
At the heart of this controversy are "highly leveraged" ETFs, which promise investors astronomical gains but come with a matching risk profile.