ETF Liquidity
Posted: August 12th, 2023, 3:38 pm
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
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