“Best practices” for ETF trading: Seven rules of the road

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Although ETFs effectively blend the investment characteristics of mutual funds with the trading flexibility of individual stocks, they trade somewhat differently than either of those assets. Investors may need to learn different tools and strategies when trading ETFs; unlike mutual funds, for example, investors generally bear the full costs of trading ETFs in their personal transactions. In a new Vanguard research paper, ‘Best practices’ for ETF trading: Seven rules of the road, authors Joel M. Dickson and James J. Rowley Jr. outline ETF trading best practices that emphasize price control and patience. Investors may be able to better control transaction costs by incorporating these practices.

Read the whitepaper.

This article was produced by Vanguard and not by the Quartz editorial staff.


  • Vanguard ETF Shares are not redeemable with the issuing Fund other than in Creation Unit aggregations. Instead, investors must buy or sell Vanguard ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.
  • All investments are subject to risk, including possible loss of principal.