Returns from ETFs depend on the performance of the underlying assets they track. There is no guaranteed return, and the value of your investment can go up as well as down.
Equity ETFs have historically delivered long-term growth but can experience significant short-term volatility. Bond ETFs generally offer more stable returns but may provide lower growth over time. The actual return you receive will also be affected by:
- The performance of the market or index the ETF tracks.
- The ETF’s Total Expense Ratio (TER), which is deducted from the fund’s performance.
- Currency movements if the ETF holds assets in a different currency.
Past performance of an ETF does not predict future results. ETFs are typically suited to investors who are comfortable with market risk and have a medium-to-long investment horizon. If your intention is to invest long-term, only invest money you can afford to leave invested for an extended period.