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Antoine Bouvy

Antoine Bouvy

16 Apr 2025
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What is the biggest risk in ETF?

The biggest risk when investing in ETFs is market risk, the risk that the overall market, or the specific sector an ETF tracks, goes down in value. Since most ETFs passively follow an index, they rise and fall with the market. If the companies in the index lose value, so does your ETF.
This means that even though ETFs are diversified (which helps reduce company-specific risk), they can still lose value during broader market downturns. In other words, diversification doesn’t protect you from the risk of the entire market dropping, it just helps spread your risk more efficiently.
That’s why it’s important to invest with a long-term perspective. Market risk tends to smooth out over time, and historically, markets have recovered from downturns. At Easyvest, we build ETF portfolios designed to weather volatility, so you can stay focused on the bigger picture.

Last updated on 16/04/2025

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Easyvest is a brand of Easyvest NV/SA (No. 0631.809.696), authorized and regulated by the Belgian Authority for Financial Services and Markets (FSMA) as a portfolio management company and as a broker in insurances, with registered office at Avenue Louise 475, 1050 Brussels, Belgium. Easyvest Pension Fund (abbreviated to Easyvest OFP) is a professional pension organisation approved by the FSMA (No. 1011.041.490) and domiciled at the same address. Copyright 2025 EASYVEST NV/SA. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in loss.