How to Execute ETF Trades Efficiently

Additionally, Kyle argued that investors should fully utilize the resources that are freely available to them. For instance, financial advisors or large investors seeking to execute big trade orders can consult a trading desk or a relevant capital markets desk to execute more efficient trade orders.

“The majority of advisors have access to a trading desk. These desks have access to expert market makers who can access the underlying liquidity,” Kyle said.

To put this notion in perspective, Kyle pointed to a WisdomTree client whom traded 811,192 shares on an ETF or just over $20 million notional at a penny inside the offer that was 30 times the average daily volume at the time of the trade.

“The investor worked with his or her trading desk because they knew that there was plenty of liquidity available via the underlying securities,” Kyle added. “Making a simple phone call or sending a simple email can make the world of a difference.”

For more information on ETFs, visit our ETF 101 category.