Trading ETFs During Heightened Volatility and Wide Bid/Ask Spreads
Investors should be aware that bid/ask spreads on many ETFs have widened due to unusual market volatility, particularly for fixed income ETFs. This is not limited to Brompton ETFs, as the illiquidity is a result of volatility in underlying markets.
We encourage you to refer to the trading advice laid out in our ETF Trading Primer, as there are valuable tips listed within the document. Specifically:
1. Use a ‘limit order’ – not a ‘market order’ – when placing a trade
2. Avoiding trading early or late in the day – markets are particularly volatile when they first open and prior to closing
3. Look at consolidated quotes – funds trade on many different exchanges, and each exchange only provides a portion of the total market activity
4. If you are a financial adviser, contact your firm’s trading desk for ETF orders larger than the posted bid or offer size
We encourage you to contact us at firstname.lastname@example.org or 1-866-642-6001 if you have any questions