You made the bed, and now you have to lie in it. That's the message from the court to disgruntled leveraged ETF investors, according to an article by Ian Salisbuy in the Wall Street Journal.

That message was broadcast loud and clear when a federal judge dismissed a class action suit against ProShares earlier this month, Salisbury writes. The suit had been filed by investors who claim they were mislead by the firm's marketing.

The WSJ story includes opinions from several legal experts, most of whom seem to agree: judges are unlikely to side with investors just because the company had poor results.

What could this mean for leveraged ETFs? Salisbury notes that this despite ProShares' winning the case, a mix of bad press and bad returns could spell trouble for these funds. He notes that there has been roughly no growth in leveraged ETF AUM since 2008, while the ETF industry in general has doubled.

For more information on the case and the potential implications for leveraged ETFs, read the original story here. 

Edited by: Ben Geier


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