5 ways to be a better ETF trader
Be more cautious when selling
Most ETFs will have more offers on the ask side, that is the side trying to sell shares, than the bid side, which is looking to buy shares, Mr. Rosenberg said. That means there’s less clarity around what share price large sell orders will get.
“It’s a little bit of an unknown,” he said.
To protect yourself you can break a large trade up into two smaller trades and see if the first trade impacts the bid-ask ratio. Or you can use a limit order, which will only sell at a predetermined price.