Risk of Trading Exchange Traded Funds. (ETFs) 1 Market risk ETFs are typically designed to track the performance of certain indices, market sectors, or groups of assets such as stock, bonds, or commodities. ETF managers may use different strategies to achieve this goal, but in general they do not have the discretion to take defensive positions in declining markets, Investors must be prepared to bear this risk of loss volatility associated with the underlying index/assets.
Risk of Trading Exchange Traded Funds
