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There appears to be a disconnect between the two paragraphs. Perhaps a connecting sentence is missing?
Jun 08 09:16 am
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All Comments by User 86999 »ETF Investment Risks [View article]
"For the most part, when you buy an ETF, it's like buying a traditional mutual fund. You own a direct stake in the stocks or bonds that make up the fund.
But there are a few exceptions: ProShares and competing levered funds, as well as some commodity funds; so there is some slight counterparty risk there."