11H·

Wikifoli

Can anyone tell me why the spread on @Krush82 Global Momentum $DE000LS9VVV3 (-0.04%) averages 1.8–2.2%, while @Epi 's Gtaa $DE000LS9U6W1 (-1.36%)

consistently hovers around 0.5–1.0%?

I’m with JustTrade, and this really annoys me—

is it different with SB+?

5 Comments

Epi@Epi

10H

My interpretation is that the certificate tracks the spreads of the assets it holds—which makes sense, because otherwise arbitrage would be possible.
Krush's Global Momentum apparently holds stocks with a higher spread than the 3xGTAA does with its ETFs.

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Farqual@Farqual

@Epi In other words, I have to decide whether these stocks are worth it to me,
or wait
until there’s a market shift, in the hope that the price will go down.
That’s too bad.

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Epi@Epi

@Farqual Well, first, the spread mentioned is lower than the daily volatility, and second, you can also buy the shares held in the certificate on your own—at times when the spread is lower.

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Olli@Olli68

Check to see if the spread at @Krush82 changes or is lower starting at 3:30 p.m. It should be.
His certificate includes U.S. stocks, which generally have a higher spread outside U.S. trading hours because the market maker or issuer uses the higher spread to hedge against the risk of low trading volume. Furthermore, the currency risk must, of course, be hedged.
P.S.: I just realized you’re referring to the global certificate. The same applies here, of course—and to an even greater extent—regarding the low trading volume and currency risk associated with Asian stocks.

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Farqual@Farqual

@Olli68 Yesterday it stayed steady at ~2%; today I bought in at 1.28.
That's acceptable to me.
I had taken the timing into account; the $/€ exchange rate was probably to blame.
I'll just keep an eye on it for now, to get a better understanding.

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