Part 9/11:

Year-to-date, ETFs tracking gold and Asia-Pacific markets have performed well. Most ETFs focus on equities or fixed income, providing diversified exposure to various sectors and regions.

Portfolio Diversification and Risk

Both ETFs and mutual funds help reduce risks compared to individual stocks, thanks to their diversified holdings. Yet, they’re not free from risks like:

• Market Volatility: Both will fluctuate with market conditions.

• Liquidity Risk: In times of urgent need, selling might take 2-5 business days.

• Issuer or Fund Manager Risk: The risk that the ETF issuer or mutual fund manager might face operational issues, potentially affecting your investments.