Author Topic: AOA ETF Too Thinly Traded  (Read 2120 times)

bootyman

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AOA ETF Too Thinly Traded
« on: May 25, 2016, 02:48:54 PM »
I am interested in investing in this fund, however I am concerned with liquidity.  Would you say this thing is too thinly traded?

AOA = Ishares aggressive allocation

jim555

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Re: AOA ETF Too Thinly Traded
« Reply #1 on: May 26, 2016, 04:46:28 AM »
Depends what size you are going in with and how often you are trading it.

ShoulderThingThatGoesUp

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Re: AOA ETF Too Thinly Traded
« Reply #2 on: May 26, 2016, 05:03:21 AM »
This is a fund of funds. If that's the allocation you want, why not buy cheaper, higher-volume funds from Schwab or Vanguard in that allocation and not pay 0.2%?

jim555

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Re: AOA ETF Too Thinly Traded
« Reply #3 on: May 26, 2016, 05:17:59 AM »
This is a fund of funds. If that's the allocation you want, why not buy cheaper, higher-volume funds from Schwab or Vanguard in that allocation and not pay 0.2%?
Yep.  Why pay them for something you can do on your own by buying the components directly?

MustacheAndaHalf

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Re: AOA ETF Too Thinly Traded
« Reply #4 on: May 26, 2016, 12:03:33 PM »
According to Google Finance, 45k shares change hands each day.  You didn't specify how much you're buying, so I'll assume $10,000 (~400 shares).  That's 1% of the daily volume according to Google Finance.  I don't know if the 400 share orders fill instantly or in a few minutes.

The fund size of $400 million is roughly medium sized.  Vanguard and iShares have funds with billions of assets, and small funds with $100 million in assets - it's within the middle of those ranges.  So I'd think orders would fill quickly, based on the fund size.

 

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