The bid-ask spread for ETFs can not be avoided, Ian Salisbury
said in this morning's WSJ FundTrack
, but individual investors can take precautions to keep it to a minimum. Among the tips offered in the article are; gauging the spread, the pros make profits here by trading at prices above or below what the shares are worth; be cautious when making trades in thinly traded funds, you may not always get the quoted price; and finally, don't heed the age-old saying the early bird gets the worm, investors will probably get a worse price in the first 5-10 minutes that the market is open.
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