The following short memo gives you an overview on how you can buy or sell an ETF. Exchange Traded Funds are traded just like any other shares, which means that ETFs are available through traditional stockbroker but also via online brokers or other fund platforms.
How to buy and sell an ETF
If you want to buy or sell an ETF, you just need to open an account with an online broker or fund platform and select the ETF you are interested in. Unlike mutual funds, you cannot buy an ETF directly from the issuer. Please keep in mind the ETFs' dealing fees are very low.
Are ETFs liquid enough?
ETFs from the big issuers are highly liquid! The liquidity of an ETF is defined by the stocks in the ETF. However, before buying an ETF you should check the transparency (usually reflected in greater spread) of some overseas or sector-based ETFs.
Is there a minimum holding period when I buy an ETF?
Not at all. ETFs are traded just like any other shares! You can sell them whenever you like.
Can I buy an ETF with out-of-hours orders?
When can I buy ETFs?
You can buy ETFs during market hours.
When is it better to buy an ETF?
The best way for you is to buy the ETF during the opening hours of the home market of the ETF's underlying. In this way, you will have a better liquidity.
How can ALPHA help me with building my own ETF Portfolio?
Thanks to our portfolio models, you will be able to build a portfolio of ETFs consistent with your chosen risk profiles.
Mr. Andrea Ferrante