Letters to the Editor
To the Editors:
In the October 2005 AAII Journal, you described the risks associated with ETFs (The Individual Investors Guide to Exchange-Traded Funds, by Maria Crawford Scott and Jean Henrich). However, you gave only brief mention of a risk that concerns methe risk of supply and demand determining the selling price, not the net asset value of the underlying stocks in the ETF. This risk is also associated with closed-end mutual funds. As these mutual funds typically sell at a discount to their intrinsic value, Im concerned that ETFs may evolve the same way in the futur
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