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Dave Nadig
3:36
but, the underlying fund has to go buy and sell securities to either put your money to work, or to raise money to pay you back
3:37
THAT activity incurs a bid/ask spread.  It's just born by all of the existing shareholders of the fund (which I would argue isn't all that fair).
With an ETF, those trading costs are externalized, into the spread you pay on the ETF.
OK folks, thats it for today.  Thanks for the great questions.  Next week I think we're on Friday again.  Have a great weekend!
3:38
And hey, if you haven't checked out our podcast lately, I think you'd like it.  ETFprime.com is a good bookmark for it.
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