# RRSP - Qualified Investments - Leveraged ETFs?



## dave4242 (Jul 21, 2021)

Hi,

I'm trying to figure out whether leveraged-ETFs and/or inverse leveraged ETFs are qualified (allowable) investments in an RRSP.

I've been reviewing the CRA documentation on this, and it seems like they are allowed, since they are listed securities. However, since they are derivatives (or based on derivatives), it seems like they may be in a gray area.

(And yes, I realized that leverages ETFs can be risky and should not be held for long periods of time....)

Any thoughts?

Cheers.


----------



## jerryhung (Mar 28, 2011)

Why wouldn't they, if they're listed?

At least for me, I have owned TQQQ/SOXL and sadly UVXY in my USD RRSP (and regular account) no problem


----------



## Spudd (Oct 11, 2011)

I'm pretty sure people can hold options in their registered accounts too, which are derivatives, aren't they? I think it's fine.


----------



## dave4242 (Jul 21, 2021)

jerryhung said:


> Why wouldn't they, if they're listed?


Because of this: _1.16 *Except for certain derivatives*, any security that is listed on a designated stock exchange (as described in ¶1.17) is a qualified investment._


----------



## dave4242 (Jul 21, 2021)

Spudd said:


> I'm pretty sure people can hold options in their registered accounts too, which are derivatives, aren't they?


The CRA website explicitly lists options as a qualified investment. The same is not true of leveraged ETFs or derivatives. 

An Option is a contract between two parties, tied directly to the underlying value of a specific stock. A derivative is a different animal, and usually much more complicated.


----------



## Spudd (Oct 11, 2011)

dave4242 said:


> The CRA website explicitly lists options as a qualified investment. The same is not true of leveraged ETFs or derivatives.
> 
> An Option is a contract between two parties, tied directly to the underlying value of a specific stock. A derivative is a different animal, and usually much more complicated.


That'll teach me to chime in on things I don't have proper knowledge of.


----------



## dave4242 (Jul 21, 2021)

Spudd said:


> That'll teach me ...


No worries, all good! Cheers!


----------

