MutualFundWire.com: WSJ Offers Bid-Ask Tips for ETF Investors
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Friday, October 26, 2007

WSJ Offers Bid-Ask Tips for ETF Investors


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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