There is always risk on the markets.
It mainly depends on the planning horizons especially when it comes about ETFs. More often than not, people think of really long investment strategy. Surely, ETFs presuppose low risks comparing with the investing in shares, but they are still exist. They become obvious during some economic unrest when the major part of assets decline in prices including all the ompanies present in S&P 500. During the regular market situations, the market tends to grow and all the risks are more or less hedged in ETFs.
So, you may think that S&P will never fall but this idea is misleading and you've got to think about all possible crises which are likely to happen in the nearest future. I for one used to hedge S&P with the ETFs on treasuries.
It mainly depends on the planning horizons especially when it comes about ETFs. More often than not, people think of really long investment strategy. Surely, ETFs presuppose low risks comparing with the investing in shares, but they are still exist. They become obvious during some economic unrest when the major part of assets decline in prices including all the ompanies present in S&P 500. During the regular market situations, the market tends to grow and all the risks are more or less hedged in ETFs.
So, you may think that S&P will never fall but this idea is misleading and you've got to think about all possible crises which are likely to happen in the nearest future. I for one used to hedge S&P with the ETFs on treasuries.
