ETF Liquidity

[Chloe]

Maybe this is the wrong place to post this question; if so where, one asks.
I was thinking of investing in an Xtrackers' ETF, symbol XD3E; it's high dividend and Euro-denominated. Looking at Hargreaves Lansdown, the (LSE) spread appears to be consistently 0.1% mid-morning (a time I expect stocks to be at their tightest spread). But I also see that hardly any shares in it are traded on LSE. FT says it's got about 215M GBP invested in it. Am I letting the LSE data steer me into the wrong assumption because I'm afraid if I buy this it will suddenly be deemed unpopular by the market makers and I'll lose out?
Or does activity in other European markets mean that a) there are many more trades than LSE records and b) the pricing is based on the activity in all the markets where it trades (or am I grasping at straws!)?
Thank you, Chloe

[GeoffF100]

The fund is denominated in GBP. The FT says that the fund size and the share class size are both £215 million:

https://markets.ft.com/data/etfs/tearsh ... 3E:LSE:GBX

I personally would not buy a tiddler like that. I also would not speculate on one segment of the market beating the market.

[mc2fool]

Maybe this is the wrong place to post this question; if so where, one asks.
I was thinking of investing in an Xtrackers' ETF, symbol XD3E; it's high dividend and Euro-denominated. Looking at Hargreaves Lansdown, the (LSE) spread appears to be consistently 0.1% mid-morning (a time I expect stocks to be at their tightest spread). But I also see that hardly any shares in it are traded on LSE. FT says it's got about 215M GBP invested in it. Am I letting the LSE data steer me into the wrong assumption because I'm afraid if I buy this it will suddenly be deemed unpopular by the market makers and I'll lose out?

I'm not quite sure what you mean by that, but if your experience is that whenever you buy something it suddenly drops in value, please post your intended trades in advance so that others can use you as a contra-indicator.

In regards to the spread, why don't you just try it? Most (all?) brokers give you an indicative spread when you enter the ticker (XD3E) and then all give you a firm price during the 15 second count down, and if you don't like the look of it you can just let it time out, or cancel it.

[1nvest]

The fund is denominated in GBP. The FT says that the fund size and the share class size are both £215 million:

https://markets.ft.com/data/etfs/tearsh ... 3E:LSE:GBX

I personally would not buy a tiddler like that. I also would not speculate on one segment of the market beating the market.

The fund is domiciled in Luxembourg and base currency is Euro. Listed in London (GBP), Xetra, Stuttgart Stock Exchange and Italian Stock Exchange each in Euro, BX Berne eXchange (CHF). 12.8 million odd total shares outstanding so at around a £18/share price = £230M in total value, across all of those stock exchanges. the XD3E.LE is just the London listing/ticker. The London Stock Exchange will just record/report its trading volumes. In total across all of the stock exchanges the volumes will be higher.

Doesn't Luxembourg have a higher withholding tax than Ireland? And as others have said that is pretty small, potentially having the pug pulled resulting in a forced capital gains tax liability.