Coupon Accepted Successfully!

Disadvantages of ETFs
  • Some countries have fewer indexes than U.S. for ETFs to track, results into mid-cap or small-cap stocks not being well represented.
  • Ability to trade intraday may not be significant to investors with longer time horizons.
  • ETFs with low trading volume may have large bid-ask spreads.
  • Larger investors may choose to directly invest in an index portfolio, resulting in lower expenses / lower tax consequences.
Risks of ETFs
  • Shareholders exposed to market risk.
  • Trading price differ.
  • Currency and Country risks.


Test Your Skills Now!
Take a Quiz now
Reviewer Name