The total cost of buying and later selling a position, including both half-spreads, any change in premium or discount between entry and exit, and commissions.
Covered in: ETF trading-cost calculator
Related terms
Go deeper: books by Will Lee, CFA
For advisors, investors, and new team members: a jargon-light foundation in creation/redemption, intraday value, and common liquidity myths.
Get the ETF Liquidity Cheat Sheet
Subscribe to receive a free two-page ETF Liquidity Cheat Sheet, plus an occasional email when a new explainer is published.
No spam. Unsubscribe anytime.
Disclaimer
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.
All views expressed are the author’s own and do not represent the views of any employer or affiliated organization.