Low volume investments

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This topic contains 1 reply, has 2 voices, and was last updated by  Alexander Horn 2 months, 2 weeks ago.

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  • #68500

    jpildis
    Participant

    As I was trading to match my new allocation this morning, I was dismayed to see ticker HEWC as on of the modeled securities for me to buy. It only trades 4700 shares a day… this is not very liquid and I really worry about the bid/ask spread impact on results. Is there a minimum average daily volume threshold that you consider before a fund is considered a feasible investment?

    #68604

    Alexander Horn
    Keymaster

    I agree that HEWC, and some other ETF in this strategy, has a relatively low trading volume. Still, using limit orders the market maker will make sure you get a decent spread. If you do not care for the CAD hedging you can also trade EWC directly, which is high volume.

    HEWC, see: https://www.etf.com/HEWC#tradability
    EWC, see: https://www.etf.com/EWC#tradability

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