Investment Insights ETFs and Mutual Funds

You've found the right exchange traded fund (ETF) and you’re ready to buy it. Use these strategies to improve your ETF trading experience.
David Stephenson Aug. 17, 2020 4-minute read

Avoid trading around market open and close

Order type

Example: You want to purchase ABC Japanese ETF, which is trading at $25. You set a buy limit order at $24.90. If you set the limit too low, you risk missing the trade in the timeline you want.

Geographic time zones

Example: So what would be a good strategy in this scenario? If trading an ETF with European stocks in the underlying basket, it may be smart to trade when European markets are open (in the morning, if trading from Canada). Any time a market maker can’t buy the underlying stocks in real time, a wider bid-ask spread or greater premiums or discounts to NAV can result.


Large orders

Created by
David Stephenson

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