19.4 The Risks of Investing in Exchange-Traded Funds

In this section

• 19.4.1 Market Risk
  An in-depth analysis of the market risks associated with investing in Exchange-Traded Funds (ETFs), with a focus on volatility considerations and exposure to general market conditions.
• 19.4.2 Tracking Error
  Understanding the nature of tracking error, its causes, and its implications on ETFs and index parity.
• 19.4.3 Liquidity Risk
  Examining the impact of liquidity levels on ETF trading execution and market prices.