The fund invests in fewer issuers or concentrates its investments by region or sector, and involves more risk than a more broadly invested fund. (putnam.com)
Because the fund may invest in fewer issuers, it is vulnerable to common economic forces and may result in greater losses and volatility. (putnam.com)
Relatively few issuers and illiquid trading leaves bid / ask spreads wider than in, say, common shares. (archeretf.com)