Anyone know or hold 2x ETFs such as GOOX and AAPX? They are T-Rex 2x Long Daily Target ETFs of Alphabet and Apple. Both are Proscribed for EY as they are our audit clients. But these ETFs are allowed. Holdings are 80% stock and 20% cash. Actively managed with expense ratio of 1%. What is the downside for EY folks to hold these to circumvent the independence?

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If the ETFs are clear, I don’t understand what you are asking. I guess the downside is if they are in a taxable account and are prohibited in the future you would have to sell and recognize losses and gains. The other downside that applies to everyone is that there is decay and you lose money if the stock is up and down

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You’d be purchasing a levered ETF, which amplifies downside—is that what you’re asking?

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We don’t ‘circumvent’ independence! These funds would be allowed so long as you’re not a covered person for alphabet and or apple.

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