ETF trading is becoming increasingly popular, with investors taking a very active stance on buying and selling these passive products.
To help investors with their ETF trading, Morningstar is hosting a live webinar today entitled “Best Practices in ETF Trading.” Morningstar’s ETF analyst Gordon Rose will be speaking with Matt Holden, managing director at Knight Capital Europe about ETF trading practices.
“It’s all about understanding the costs of trading and getting the best deal, so to speak, because there’s a lot of hidden costs in trading,” says Rose.
The holding period for ETFs has become shorter over the years, which means people are trading ETFs more frequently, says Rose. While Morningstar encourages long-term investments, we also want to help investors understand how to get the best ‘bang for their buck’ when it comes to trading strategies, he says.
Rose and Holden will be discussing key points investor’s should look at in order to achieve the best trading execution. Specifically, they will address the following questions:
- Should you use limit-orders or stop-loss orders?
- How does ETF liquidity affect my trading strategies?
- Is it better to trade at NAV or iNAV?
- What about spreads?
This one-hour webinar is part of a series of monthly ETF webinars intended for individual investors and advisors. The webinar will be live today (May 30th, 2012) at 3PM BST. Joining the webinar live provides the opportunity to pose your own questions. If you missed the live event you can watch it again by clicking on the video below.
If you are not already registered with BrightTALK you will need to register first. Registration is free, fast and provides access to a host of other Morningstar webinars.
Want to learn more? Watch the ETF webinar from April 2012, entitled Asset Managers Explain How They Use ETFs.