Culture
Recycles dryer sheets
- Joined
- Apr 15, 2007
- Messages
- 491
I just completed some major rebalancing. One of the ETFs that I rebalanced was IWC, iShares Micro-Cap. IWC is thinly traded, average volume of only 143,000 shares. I have always had buyers remorse about this ETF, as the ER is too high, and the total assets and trading volume are too low. However, I believe it is best in its class, and I decided I wanted to slice and dice into microcaps.
At the time I submitted my sale of 246 shares, the bid price was 73.64. I submitted the sale with a limit of 73.50 (what was I thinking?). The sale executed at 73.5001, and the bid price afterwards was 73.57.
I am convinced, and will never be able to prove, that I just got ripped of at least $17.22. Not much, but repeated 10,000,000 times per day, this is serious money. I should have submitted with a limit of 73.60, and I suspect it would have sold at that price.
I am slowly moving out of any ETF with an average sales volume less than 1,000,000 shares. I currently have just two, IWC and SCZ. This is what I get for ignoring my IPS.
At the time I submitted my sale of 246 shares, the bid price was 73.64. I submitted the sale with a limit of 73.50 (what was I thinking?). The sale executed at 73.5001, and the bid price afterwards was 73.57.
I am convinced, and will never be able to prove, that I just got ripped of at least $17.22. Not much, but repeated 10,000,000 times per day, this is serious money. I should have submitted with a limit of 73.60, and I suspect it would have sold at that price.
I am slowly moving out of any ETF with an average sales volume less than 1,000,000 shares. I currently have just two, IWC and SCZ. This is what I get for ignoring my IPS.
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