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SEC Pauses Review of Highly Leveraged ETFs Amid Concerns

12/4/2025

46 6 Full Breakdown

Summary

Story summary

On December 3, 2025, the U.S. Securities and Exchange Commission paused the review of new highly leveraged exchange-traded funds from nine fund managers, including Direxion and ProShares.
The SEC cited concerns about funds seeking more than 200% leveraged exposure and referenced Rule 18f-4 under the Investment Company Act of 1940.
The regulator's request for clarification could lead fund managers to revise strategies or withdraw filings.

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Story summary

On December 3, 2025, the U.S. Securities and Exchange Commission paused the review of new highly leveraged exchange-traded funds from nine fund managers, including Direxion and ProShares.
The SEC cited concerns about funds seeking more than 200% leveraged exposure and referenced Rule 18f-4 under the Investment Company Act of 1940.
The regulator's request for clarification could lead fund managers to revise strategies or withdraw filings.