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?
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.