The US wealth management arm of UBS has stopped recommending exchange-traded funds that short stocks or use leverage to its clients, in the wake regulatory pressure to the clarify the products to investors confused over the returns they provide.

UBS said in a statement yesterday that it will no longer suggest to clients that they put their money into these ETFs. The bank said that "recent regulatory guidance on leveraged and inverse ETFs reinforces the short-term nature of these products, particularly in volatile markets", according to Dow Jones Newswires.