Lessons
- How an ETF trades: shares, price and NAV Lesson 1, 6 minutes
- Market, limit and stop orders: what each does to your price Lesson 2, 7 minutes
- The bid-ask spread: the trading cost you don't see Lesson 3, 6 minutes
- Premium and discount: when price and value split Lesson 4, 6 minutes
- Liquidity: why trading volume is the wrong clue Lesson 5, 7 minutes
- The open, the close and foreign hours: how timing changes your price Lesson 6, 6 minutes
- What a round trip really costs: spread, premium, fee and tax Lesson 7, 7 minutes
Your progress
Finish all 7 lessons and get 2 of 3 right on each quiz to earn the course certificate.0 of 7 lessons passed on this device.
What you learn
- The difference between an ETF's market price and its NAV, and how authorized participants keep them close
- What market, limit and stop orders do to the price you get, and how the bid-ask spread sets the cost of a market order
- What the bid-ask spread is, how to turn it into dollars for a round trip and when it costs more than a fund fee
- What an ETF premium or discount to NAV is, how to turn it into dollars, and why some funds drift from their holdings
- What makes an ETF easy or hard to trade, why daily volume misleads, and how the IQ Liquidity Score reads spread and capacity
- How the opening minutes, foreign market hours and rough market days change an ETF price against the value of its holdings
- How to add the spread, premium, fee and tax into the full cost of buying, holding and selling an ETF