FYI: With so many brokerage firms waiving commissions, many have the perception that buying and selling ETFs is free. Though most of us are aware that ETFs have bid/ask spreads, new research draws attention to how large the spreads can be and how they can be minimized.
The research titled “Examining Intraday ETF Liquidity: When Should Investors Trade?” was published earlier this year in the Journal of Index Investing. The authors, James Rowley, Charles Thomas and Ryan O’Hanlon, all from Vanguard, examined ETF trades during five-minute intervals throughout the trading day for U.S.-listed domestic equity ETFs.
Regards,
Ted
https://www.etf.com/sections/index-investor-corner/5-tips-buying-selling-etfs
