Author Topic: Process of buying an ETF  (Read 2029 times)


  • 5 O'Clock Shadow
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Process of buying an ETF
« on: October 23, 2014, 09:46:17 AM »
I think I will buy my first ETF tomorrow (VWRL) and the following are rules I will stick to when buying them:

1.   Buy the ETF when the US and European markets are open at the same time for liquidity.
2.   Use a limit order.
3.   Look at it for 1-2 days before purchase to see what usual bid/ask spreads are. From today it seems that if the bid/ask spread is 4bps itís good liquidity and if itís 7 or 8 itís bad. I will buy at the ask price when the spread is low.
4.   Iíve paid Ä2 per month for the real time data rather than delayed

Am I making any mistakes here? Any more rules I'm missing?


  • Pencil Stache
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Re: Process of buying an ETF
« Reply #1 on: October 23, 2014, 10:20:27 AM »
The only thing I would add is to pay attention to the spreads for NAV / market price. Sometimes these get a little wacky as well. Also, the benefit of real time data is not really a big issue for highly liquid ETF's with lots of volume so its probably not worth the 2 Euro. It's more designed to benefit day traders or people who trade junior companies.