And Howard Atkinson, president of
“I agree. You can’t compare one-beta ETFs with leveraged ETFs where the investment objective is daily,” Atkinson told the National Post. “They’re no more comparable than bonds and equities are and have a different risk/return profile.”
Burns said the issue came up at Morningstar now that a handful of leveraged ETFs, including two from BetaPro, have a three-year track record, which would qualify them for inclusion in the star rating system. However, should Morningstar create a separate ratings system for leveraged ETFs, the top 15% will automatically qualify for the coveted five-star rating, which could encourage some investors to move into them - a factor Morningstar is weighing.