Market risk
As with any investment that trades on a securities exchange, the return received is subject to fluctuations associated with market conditions. Although ETF’s are considered to be a lower risk investment over medium to long-term investing, the stock exchange can be risky. Therefore depending on the market movement one is not guaranteed to get back the initial amount invested when you do decide to sell.
Tax risk
The tax treatment of investors will vary depending on the tax status of the investor in question.
Investors should seek their own professional tax advice.
Political risk
The performance of the fund may be affected by changes in economic and market conditions, political developments, changes in government policies or changes in legal, exchange control, regulatory and tax requirements.