Fidelity for example offers ETF with symbol IVE to track S & P 500 Index. If you are a long term investor and bought $1000 worth of IVE 5 yrs ago and saved $8 in commissions, your paper profit today would be a nice $858.90. Instead you bought $1000 worth of SPY and paid $8 commission your paper profit today is $972.90 - 8 = $964.90 which is extra $100 for you.
If you are short term options trader or you want to use options as insurance on your investment, there is hardly any trading in IVE. The spread between as bid and ask is so much and your trade may never go through. Use ctrl + to increase the zoom to see the graphics.
No comments:
Post a Comment