http://wealthfly.com/blog/2007/06/06/unexpected-benefit-of-etfs/ A blog for investment advisors, brokers and financial planners. Tue, 06 Jan 2009 11:54:26 +0000 http://wordpress.org/?v=2.3.3 http://wealthfly.com/blog/2007/06/06/unexpected-benefit-of-etfs/#comment-204 Bill Ramsay Thu, 14 Jun 2007 13:48:39 +0000 http://wealthfly.com/blog/2007/06/06/unexpected-benefit-of-etfs/#comment-204 If it was possible to get real time quality data on the premium/discount of an ETF to the index, you could get rid of a rarely discussed risk- that you end up buying when its at a premium and selling when its at a discount. Granted that diff is usually not big, but if its .15%, and you miss on both sides, that increased your cost by .30%. I'm sure those tools exist, as the arbitragers which keep the price near the index must have them. Don't know what they cost though. If it was possible to get real time quality data on the premium/discount of an ETF to the index, you could get rid of a rarely discussed risk- that you end up buying when its at a premium and selling when its at a discount. Granted that diff is usually not big, but if its .15%, and you miss on both sides, that increased your cost by .30%. I’m sure those tools exist, as the arbitragers which keep the price near the index must have them. Don’t know what they cost though.

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