DealBook – The Securities and Exchange Commission announced Thursday that it was reviewing the use of swaps and other derivatives by mutual funds, exchange-traded funds and other investment products that are often marketed to individual investors, Edward Wyatt of The New York Times reports.
The review has been prompted by what appears to be a growing number of funds, particularly exchange-traded funds, that have sought to use derivatives to provide outsized returns rather than simply track the performance of a market index.
