I’m quite new to ETF investment, actually just started to invest few days ago after a long period of research.
Now I just wonder if it really worths to assume the below risks when investing on VT ETF. If I plan to invest more than 3000$ (minimum fund buy-in) wouldn’t I better stick with VTSAX?
“Because ETF Shares are traded on an exchange, they are subject to additional risks:
• The Fund’s ETF Shares are listed for trading on NYSE Arca and are bought and sold
on the secondary market at market prices. Although it is expected that the market
price of an ETF Share typically will approximate its net asset value (NAV), there may
be times when the market price and the NAV differ significantly. Thus, you may pay
more or less than NAV when you buy ETF Shares on the secondary market, and you
may receive more or less than NAV when you sell those shares.
• Although the Fund’s ETF Shares are listed for trading on NYSE Arca, it is possible
that an active trading market may not be maintained.
• Trading of the Fund’s ETF Shares may be halted by the activation of individual or
marketwide trading halts (which halt trading for a specific period of time when the
price of a particular security or overall market prices decline by a specified
percentage). Trading of the Fund’s ETF Shares may also be halted if (1) the shares are
delisted from NYSE Arca without first being listed on another exchange or (2) NYSE
Arca officials determine that such action is appropriate in the interest of a fair and
orderly market or for the protection of investors.”