There are so many different types of ETFs you can invest in. This makes it so important that proper research and analysis of the risk involved is done on the individual ETFs that you are considering to invest in. Some ETFs are not designed for your average investor and can be very specialised. These include leveraged and inverse ETFs, where you have the potential to lose much more than you originally invested. These securities should only be played around with, by those who have the knowledge and experience, otherwise you may be exposed to some serious risk.
ETFs may not be for everyone, but they can be a part of a lot of people portfolios. Once you weigh up all their pros and cons, you can see that they might be a safer bet for many people as they are designed to track an index, commodity, bond or group of stocks in a particular industry. However it is important not to take this article as investment advice, as every individual will have different requirements, preferences, and risk tolerance levels. In other words an ETF that suits one person may not be applicable for another. With so many ETF’s out there, it is important to do your own research to come to your own conclusions.