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Thirteen percent of surveyed investors scored high on financial literacy in a recent Allianz study, with 33% falling into the low tier, a gap that Bloomberg's editorial board cited this week in calling for brokerage-level gatekeeping on leveraged exchange-traded funds.
Bloomberg's recommendation: vet customers before granting access and cap strategies at 2x leverage.
The Securities and Exchange Commission has effectively already drawn that line, blocking new funds that target leverage above 2x. The literacy math Bloomberg is working with The Allianz numbers hold up to scrutiny.
Over a quarter of US respondents rated themselves more knowledgeable than the average investor.
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