The question
Every fund has a Trading tab full of numbers. Which ones matter, and how do they fit together?
The idea
- The Beginner course taught the spread, the premium or discount and liquidity one at a time. The trading card shows them together, so you can spot the weak link.
- The IQ Liquidity Score (0 to 100, 100 is best) scores each part, then takes a weighted average. Strong parts can hide a weak one; reading the card means finding it.
Worked example
The 6 steps beside the drawing at the top work this through on ETFIQ data. Point at a step to light the part of the drawing it describes.
ISPY is an income fund that holds S&P 500 stocks and earns extra cash from options. Its card on Nov 10, 2026:
| Part | Score | Weight | Score × weight |
|---|---|---|---|
| Cost to trade | 56.2 | 30 | 1,686 |
| Capacity | 100 | 25 | 2,500 |
| Price vs NAV | 84.1 | 15 | 1,262 |
| Dealers | 65 | 15 | 975 |
| Bad days | 82.7 | 10 | 827 |
Total: 1,686 + 2,500 + 1,262 + 975 + 827 = 7,250, and 7,250 ÷ 95 = 76.3, shown as 76. Each part's score comes from fixed anchors, the same for every fund.
The weak link is cost. A 0.15% spread scores 56 on a scale where 0.02% scores 100 and 2% scores 0. Perfect capacity can't make up for it, because cost carries the most weight.
The common mistake
"A high score means every number on the card is good." The score is an average. ISPY reaches 76 with perfect capacity and middling cost; another fund can reach it the other way round. Read the part bars, and check the one that matters for how you trade: cost if you trade often, capacity if your orders are large.
Check your understanding
Pick an answer to see why. Two of three right passes the lesson.
1. ISPY's capacity scored 100, but its total was 76. Why?Answer: D. The score is a weighted average, and the spread scored only 56 with the largest weight. each part counts by its weight, and cost carries 30 of the 95. Not A: capacity counts, at 25; it just can't lift a weak cost score alone.2. A fund's card shows a spread of 0.04%, but 95% of its days sit within ±2.5% of NAV. Where is its weak link?Answer: A. Price against value (premium or discount). the spread is tight, but the price strays far from what the holdings are worth; the card flags "Price can drift from value" once that range passes 2%. Not C: a 0.04% spread is near the best anchor of 0.02%.3. You plan one $10,000 round trip in ISPY. Using its card, what does the spread cost you?Answer: C. $15. $10,000 × 0.15% = $15 for in and out. Not B: $7.50 is one way only.
Takeaways
- The score is an average: read the part bars to find the weak link.
- Match the part to how you trade: cost for frequent trades, capacity for large ones.
- Each number carries its own date and window; check both before comparing funds.