It looks like investors in equity ETFs--Vanguard's included--are over-trading and it's costing them.
I wonder if the results would be different if SPY--the SPDR--trading was taken out of the calculation since a lot of the heavy dollar trading there are institutions?
Good question. When I removed it it didn't change the picture -- the gap between ETFs'' aggregate dollar-weighted and total returns didn't shrink.
Interesting. Thanks for checking.
I wonder if the results would be different if SPY--the SPDR--trading was taken out of the calculation since a lot of the heavy dollar trading there are institutions?
Good question. When I removed it it didn't change the picture -- the gap between ETFs'' aggregate dollar-weighted and total returns didn't shrink.
Interesting. Thanks for checking.