ETFs are considered low-risk investments because they are low-cost and contain a basket of stocks or other securities, increasing diversification. For most individual investors, ETFs represent an ideal type of asset with which to build a diversified portfolio. While ETFs offer a number of benefits, the myriad and low-cost ones available through ETFs can lead investors to make reckless decisions. In addition, not all ETFs are the same.
Execution prices and discrepancies in monitoring can cause unpleasant surprises for investors.