Investing through ETFs
We normally associate investment risk with loss of capital, fluctuation or volatility in prices of listed securities, foreign exchange risk, stock picking risk and so on. The impact of ‘illiquidity’ is also an important risk in listed securities like stocks and exchange traded-funds (ETFs). Illiquidity risk in Real Estate Real estate is plagued with illiquidity risk and this is well understood by most people, however, the same parameter is somewhat misunderstood in listed securities such as ETFs. Sometimes in an hour of crisis we may be forced to sell assets like our house with distress selling wherein lack of liquidity […]