Those who read a prospectus are aware of the long standing risk factors documented for a particular fund; as with: asset risk, credit risk, concentration risk, market risk, etc., etc., etc. The legal stuff, eh? One is is agreeing to "whatever" may affect fund performance; and effectively agrees to a "hold harmless" clause.
The below is a newly added "risk" factor within a prospectus.
Infectious Illness Risk. An outbreak of
an infectious respiratory illness, COVID19, caused by a novel coronavirus has
resulted in travel restrictions, disruption
of healthcare systems, prolonged
quarantines, cancellations, supply chain
disruptions, lower consumer demand,
layoffs, ratings downgrades, defaults
and other significant economic impacts.
Certain markets have experienced
temporary closures, extreme volatility,
severe losses, reduced liquidity and
increased trading costs. These events
will have an impact on the Fund and its
investments and could impact the
Fund’s ability to purchase or sell
securities or cause elevated tracking
error and increased premiums or
discounts to the Fund’s NAV. Other
infectious illness outbreaks in the future
may result in similar impacts.
Take care,
Catch
