But many more ETFs had spreads of $0.25/share or more.
What does all this mean for investors? It means you have to choose carefully in this market. If you are looking at ETFs with relatively low levels of assets or relatively light trading volume, check to see what the average trading spread looks like and use limit orders when entering your trades. The Arcavision data is not available to retail investors, but IndexUniverse.com has average monthly spreads data available for all ETFs for free at www.indexuniverse.com/data. If you're buying an ETF with a wide spread, factor that cost into your decision-making process.
|
ETFs With One-Penny Spreads - October 2008 |
|
|
Name |
Ticker |
|
iShares DJ US Real Estate |
IYR |
|
iShares FTSE/Xinhua China |
FXI |
|
iShares Lehman 1-3 yr Treasury Bond Fund |
SHY |
|
iShares MSCI Australia Index Fund |
EWA |
|
iShares MSCI EAFE Index |
EFA |
|
iShares MSCI Emerging Markets Index Fund |
EEM |
|
iShares MSCI Hong Kong Index |
EWH |
|
iShares MSCI Japan Fund |
EWJ |
|
iShares MSCI Malaysia |
EWM |
|
iShares MSCI Singapore Index |
EWS |
|
iShares MSCI Taiwan Index |
EWT |
|
iShares Russell 2000 Index Fund |
IWM |
|
iShares Silver Trust |
SLV |
|
PowerShares QQQ Trust, Series 1 |
QQQQ |
|
ProShares Ultra Financials |
UYG |
|
ProShares Ultra S&P 500 |
SSO |
|
Select Sector - Consumer Discretionary |
XLY |
|
Select Sector - Consumer Staples |
XLP |
|
Select Sector - Energy |
XLE |
|
Select Sector - Health Care |
XLV |
|
Select Sector - Industrials |
XLI |
|
Select Sector - Materials |
XLB |
|
Select Sector - Technology |
XLK |
|
Select Sector - Utilities |
XLU |
|
Select Sector - Financials |
XLF |
|
Semiconductors HOLDRS Trust |
SMH |
|
SPDR |
SPY |
|
SPDR S&P Homebuilders ETF |
XHB |
|
SPDR S&P Retail ETF |
XRT |
|
United States Natural Gas Fund, LP Unit |
UNG |
|
Vanguard Emerging Markets ETF |
VWO |
