Comments on: Schwab’s ETF innovation http://blogs.reuters.com/felix-salmon/2009/11/04/schwabs-etf-innovation/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: JackL http://blogs.reuters.com/felix-salmon/2009/11/04/schwabs-etf-innovation/comment-page-1/#comment-8341 Wed, 04 Nov 2009 20:27:53 +0000 http://blogs.reuters.com/felix-salmon/2009/11/04/schwabs-etf-innovation/#comment-8341 RE: Small ETFs

I don’t understand the reasonings for avoiding small ETFs. Yes, I agree they are usually illiquid and so often have wide bid/ask spreads and that is a reason to avoid. But, your reasoning in the PCY post is puzzling. Avoid them because they can be pushed by large panic sellers? That seems like a great opportunity rather than a problem. Panic can push the ETF significantly below its NAV. However, panic is temporary. You get to buy it at a discount and make a fortune when the panic subsides. Check out the chart of PCY since your post. The price fell of a cliff, but has since fully recovered.

]]>
By: q http://blogs.reuters.com/felix-salmon/2009/11/04/schwabs-etf-innovation/comment-page-1/#comment-8335 Wed, 04 Nov 2009 18:33:26 +0000 http://blogs.reuters.com/felix-salmon/2009/11/04/schwabs-etf-innovation/#comment-8335 two words: vendor lock

i have the same vendor lock issue with fidelity’s mutual funds.

]]>