主题：【文摘】risk of leverage ETF -- xman

The SEC and FINRA recently published a Joint Alert (http://www.sec.gov/investor/pubs/leveragedetfs-alert.htm) to highlight the special risks associated with trading leveraged and inverse exchange-traded funds (ETFs) that could expose individual investors to potentially significant losses. Therefore, this type of strategy may not be suitable for all customers. Please read the following carefully:

1. Buy and Hold Risk - Most leveraged and inverse ETFs reset each day, which means they are designed to achieve their stated objective on a daily basis. Investors should be aware that performance of these ETFs over a period of longer than one day can differ significantly from their stated daily performance objectives. Over longer periods of time (over weeks, months or years) the performance of leveraged and inverse ETFs can also differ significantly from the performance (or inverse of the performance) of their underlying index or benchmark during the same period of time. Because they reset each day, leveraged and inverse ETFs typically are inappropriate as an intermediate or long-term investment, particularly in volatile markets.

2. Hard-to-Borrow Fees May Be Charged - If a customer is short a leveraged ETF, the clearing firm has to borrow it in order to deliver it to the buyer. When there is huge demand to short a leveraged ETF, together with a shortage of shares that are available to borrow, holders of a leveraged ETF can charge very high rates to borrow the holding. These rates are classified as hard-to-borrow rates and occur when the customer initially shorts a stock or ETF or while the ETF is being held short by the customer. In either scenario, a customer most likely will incur hard-to-borrow fees without prior notice. These fees are at a market rate and charged by OptionsHouse's clearing firm, Penson Financial Services, Inc. on a daily basis. Customers need to closely monitor their hard-to-borrow fees to ensure they still believe shorting a leveraged ETF is worthwhile.

3. Margin Risk - As stated in the SEC/FINRA Investor Alert, "It is possible that you could suffer significant losses even if the long-term performance of the index showed a gain." Trading leveraged ETFs is suitable only for the knowledgeable investor who understands the risks, has the financial capacity and wherewithal to incur potentially substantial losses, and has sufficient liquid assets to meet applicable margin requirements. If an investor does not make such margin payments, OptionsHouse may liquidate stock or options positions in the investor's account, with little or no prior notice, in accordance with the investor's margin agreement. In addition, an investor in this situation is not entitled to an extension of time on a margin call. Further, an investor can lose more funds than deposited into a margin account.

4. Things to Consider Before Investing - No matter how you initially hear about them, it pays to do your own homework. It is important to read the ETF's prospectus and to understand the investment objectives, principal investment strategies, risks and costs. Finally, only invest if you are confident the product can help you meet your investment objectives and you are knowledgeable and comfortable with the risks associated with these specialized, non-traditional ETFs.