#ETFWatch information that NOMAD says:
"ETF is an acronym for the term in English Exchange Traded Funds, an asset fund that usually tracks or replicates the performance of a certain economic index, and may also follow some market segment, with variable income and debts (public or private).
In practice, ETFs function as a kind of investment fund, as they are composed of different assets selected by a manager according to the index being followed. Thus, they are a type of diversified investment by nature — when an investor acquires an ETF, they are not exposed to the stocks of a single company.
Since this type of investment tracks an index, it is interesting to know if its performance will follow that of the benchmark. That is, if the index rises, the ETF will increase in value. However, in the case of devaluation, the drop will happen.
The trading of American ETFs occurs on the country's stock exchanges, and Brazilian ETFs are traded on B3, the national stock exchange.
Market risk
Like any investment in stocks, ETFs are subject to market risk. The value of the underlying stocks of the ETF can fluctuate due to economic, political factors, and unforeseen events.
Liquidity risk
Although ETFs are traded on stock exchanges, liquidity tends to vary. In some cases, there may be a lack of buyers or sellers willing to trade the ETF at a desired price, which can lead to wider spreads (the difference between the buying and selling prices)"