In recent years, few corners of the investing world have been the subject of as much controversy, misinformation, and confusion as the leveraged ETF space. Last summer these securities received widespread coverage from the financial media, much of it either implying directly or alleging that leveraged ETFs were flawed investment vehicles designed to dupe average investors out of their money. That prolonged debate over the merits of leveraged funds was somewhat frightening–it highlighted the ignorance of some well-respected publications–but the end result seemed to be an increased emphasis on investor education and a clearer understanding of what leveraged ETFs are and are not designed to do. Now it seems that conclusion may have been a bit naive. Some state securities regulators are including leveraged ETFs on their watch lists of “investor traps,” lumping them in with variety of investment scams. And recent stops on the conference tour have included some [...] Click here to read the original article on ETFdb.com. Related Stories: The Shocking Truth About Leveraged ETFs Changes Coming To Leveraged ETFs? Five Facts About HOLDRS Every ETF Investor Must Know