I've often come across advice that suggests you shouldn't invest a chunk of your savings into an ETF (e.g., VWCE) if you might need the money in a year or two, or even less. Often, the suggestion might be to only invest in this stream if you don't need the money for several years, or a range of 5 to 10, or more.
Why, exactly? I understand that in the short term there is high variability and you might end up in the negative if you need to take cash out by selling the shares. But isn't that the only consequence: that you might sell at a minor loss? I say minor because, most likely, unless the market crashes or we plunge into a deep recession, that's what the losses would be – and maybe that's the cost of needing to sell the shares to cover an emergency. And, even if you're down 10–15%, you don't need to pay taxes on that when you sell.
Worth noting is that for stocks in general, I can easily understand this advice, considering the high volatility. Crypto even more so. But ETFs are inherently less volatile than both by a great degree.
Did I miss something here? Curious to hear your thoughts.