Massachusetts Initiates Sweep of Single-Stock ETFs

Posted on September 1st, 2022 at 3:24 PM
Massachusetts Initiates Sweep of Single-Stock ETFs

From the Desk of Jim Eccleston at Eccleston Law.

Massachusetts’ head securities regulator, William Galvin, has initiated a sweep of complex single-stock exchange-traded fund (ETF) offerings that were recently introduced to the public. 

Galvin has sent letters to Foreside Fund Services, IMST Distributors, ALPS Distributors and Quasar Distributors, which are Massachusetts-based broker-dealers that distribute the Direxion, AXS Investment, GraniteShares, and F/m Investments product lines, respectively. Galvin has requested that the broker-dealers respond to the letter by September 1.

According to Galvin, “For nearly all Main Street investors, there is no difference between investing your money in single-stock ETFs and gambling with that money at a casino.” Similar to leverage ETFs, single-stock ETFs require daily monitoring and do not track the underlying performance of a stock over time. While single-stock ETFs may be suitable for day traders, most retail investors would be best served by investing their funds in long-term holdings, according to Galvin.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, etf

Return to Archive

TESTIMONIALS

Previous
Next

 


It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


 

Beth M.

LATEST NEWS AND ARTICLES

February 6, 2026
Delaware Regulators Fine Kovack Advisors $985,000

Kovack Advisors Inc., the registered investment adviser affiliate of independent broker-dealer Kovack Securities Inc., agreed to pay a $985,000 fine to Delaware securities regulators.

February 5, 2026
FINRA Fines Broker-Dealer for Repeated Form CRS Disclosure Failures

The Financial Industry Regulatory Authority (FINRA) fined VSI Securities Inc., formerly known as Venecredit Securities Inc., $20,000 for failing to accurately disclose the firm’s disciplinary history in its customer relationship summary, known as Form CRS.

February 4, 2026
Investor Redemptions Rise in Nontraded BDCs Amid Credit Concerns

Financial advisors and their clients have increased redemptions from nontraded business development companies (BDCs) following a series of high-profile corporate bankruptcies, according to InvestmentNews. The surge highlights growing investor concern about liquidity and credit exposure within these high-yield but often risky investment ...