Opportunities for ETFs Investment
- Cost savings: Investors may save costs due to the lowe operating expense of ETFs compared to traditional investment funds.
- More flexible trading: ETFs can be traded daily, providing investors with greater flexibility in managing their capital.
- High transparency: Investors can view the portfolio of stocks in the ETF they are investing in, as the ETF's holdings are published daily.
Risks of ETF Investment
- Market supply and demand: Like any other commodity, the price of ETFs is affected by supply and demand factors.
- Market risk: The volatility of the underlying securities directly affects ETFs. When factors increase the volatility of the underlying securities, the price of the ETF will rise, and vice versa.
Liquidity risk: The liquidity of Vietnamese ETFs is quite low, as they have not yet attracted significant interest from investors.
- Fund certificates do not have a fixed time or specific proft rate like bank deposits, so the profits from fund certificates can be higher or lower compared to those from a bank.
- However, because of the higher risk and the potential for better profits, you should assess your own risk tolerance to make an appropriate decision.