The difference between the ask and the bid, often expressed in basis points of the midpoint price. It is part of the cost of trading immediately.
From this site’s articles: "During periods of market volatility, ETF bid–ask spreads often widen."
Quoted passages come from the articles on this site.
Covered in: ETF trading-cost calculator · Why ETF Liquidity ≠ AUM · Why ETFs Surface Liquidity Constraints Faster Than Mutual Funds
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This material is provided for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security.
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