Experience the Difference: ETFs
ETFs are rapidly displacing mutual funds, particularly in asset allocation strategies designed around target dates or risk tolerances. So many success factors in today’s trading landscape – performance, operational efficiency, tax efficiency, intraday trading, standard settlement – all favor ETFs.
The question: what is your firm going to do about it?
Read our article:
ETF Trading Essentials:
Virtual Panel
CAPIS hosted a panel of experts from Goldman Sachs and First Citizens for an in-depth discussion all about the ins and outs of ETF trading. Learn about key strategies, dynamics, and best practices for ETF trading and how to deploy them as part of your investment strategy.
ETF Trading: The Basics
Costs
Spread Costs – The difference between the bid and ask
Risk Premium – Quoted discount or premium to buy or sell a position
Opportunity Cost – Performance impact related to market exposure imbalances
Strategies
Open Market Participation – Best for highly liquid ETFs
Principal Bids/Offers – Best for illiquid ETFs
Combination Strategy – Best for rebalancing programs and remaining dollar-neutral
Do ETFs Trade More Like Stocks or Bonds?
Well, both. Small ETF orders tend to trade like listed stocks, executed in seconds at or near the NBBO. Larger ETF orders trade like bonds, so putting market makers or authorized participants (APs) in competition with one another is key to finding the best price.
Our team emphasizes trading excellence, transparency, and trust in everything we do. We’re committed to meeting your trading needs – in the ETF market and beyond.
Looking for definitions, examples, and more? Check out how we handled a recent trade in an iShares commodity ETF.
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