Key insights
- The post discusses the disadvantages of ETFs for small investors, particularly those in developing countries. Key concerns include currency conversion risks when investing in USD or EUR-denominated ETFs, limited access to platforms like Interactive Brokers, and the impact of transaction fees on small, regular investments. These factors can erode returns for investors with limited capital.
i always heard positive thing about ETF like it is pretty safe investment with lowest expense ratio than mutual funds but never the cons, can anyone elaborate any cons for ETF?
For me since i am living in 3rd world country which has lower currency, might suffer to conversion to USD or EURO especially right now crisis cause it worser.
and access is difficult since interactive brokers is not officially available here. i also heard that there is fees on interactive brokers so not great to invest in small amount like $10 or $50 per month.
any suggestion?