On Tuesday, the bid-ask spread on Spain's 10-year note hit roughly 0.12 percentage point.
In March, all 18 CIO marks had moved to the extreme boundaries of the bid-ask spread.
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"We don't make money on the bid-ask spread, " insists Kyle Vann, Entergy-Koch's chief executive.
For example, the bid-ask spread on German 10-year bonds is less than 0.01 percentage point.
"We don't make money on the bid-ask spread, " says Kyle Vann, Entergy-Koch's CEO.
Item No. 2 is the bid-ask spread, expressed as a per-year percentage expense.
Brokers push them, he says, because the pricing is opaque and most customers will never see a bid-ask spread.
If the ETF is little traded the bid-ask spread will be high, and a reasonably small order may move the market.
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Advisors typically collect higher fees for trading strategies, brokers collect more commissions, exchanges earn a fee from each transaction, and market makers gorge themselves on the bid-ask spread.
One issue for investors, according to Mr. Rosenbluth, is that this two-year-old fund is thinly traded and can have a wide bid-ask spread (the difference between the prices potential buyers "bid" to acquire shares and the prices potential sellers "ask" to part with theirs).
The best way to protect yourself is to use limit orders when placing an order to buy or sell a stock or an exchange-traded fund. (See How Your Buy and Sell Orders Get Filled for more.) Look at the bid-ask spread and set your price limit at the bid for selling a stock and at the ask for buying a stock.
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The cost of buying a second-hand Treasury at Fidelity is half the spread between bid and ask prices.
The new rules on stock quotations get at the ability of investors to get in the middle of the spread between the bid and ask prices quoted by market- makers.
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