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Search for an ETF or holding
Updated 2mo ago.
Updated 2mo ago.
The bid-ask spread is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller will accept (ask). It is a hidden cost every time you buy or sell an ETF.
Suppose XIU.TO shows:
For a highly liquid ETF like XIU.TO, the spread is minimal. But for a less traded ETF like a low-volume sector ETF, the spread could be $0.10 to $0.30, which represents a significant cost on each transaction.
The spread is an invisible cost that does not appear on your account statement. To minimize it: buy ETFs with high trading volume, use limit orders rather than market orders, and avoid trading in the first and last 15 minutes of the trading session when spreads are wider.