Dear fellow Mustachians
I read along on the forum for some time and now hope that you can help me answer my first question: Which risks do ETFs bring with them?
Doing my own research, I came up with the following answers, which I hope you can help me complete:
- obviously, risk of decreasing price.
- risk that the issuer (e.g. Vanguard) goes bankrupt.
- risk that the fund is closed, possibly at an unsuitable time with low prices
- more „systemic“ risks, where ETFs could be subjected to new regulations because they lead to distortions at the stock markets and enhance „herd behaviour“ and instability.
What other risks can you think of?