Single-Stock ETFs Move Closer to Market Despite SEC Concerns
- AXS appears to have cleared regulatory hurdle to offer funds
- SEC Commissioner Crenshaw criticizes the complex products
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AXS Investments became the first company to pass a regulatory milestone to provide leveraged single-stock ETFs in the US, even as Securities and Exchange Commission officials criticized such products as potentially posing serious risks for investors and the markets.
The company filed paperwork with the agency Monday in preparation for offering exchange-traded funds holding complex derivatives tied to the performance of stocks like Tesla Inc. and Nvidia Corp. It wasn’t immediately clear when the ETFs might hit the market, but the filing indicates AXS now has regulatory approval to proceed.