%0 Journal Article %A James J. Angel %A Todd J. Broms %A Gary L. Gastineau %A Gauri Goyal %T Practical Applications of ETF Transaction Costs Are Often Higher Than Investors Realize %D 2016 %R 10.3905/pa.2016.4.2.167 %J Practical Applications %P 1-5 %V 4 %N 2 %X ETF Transaction Costs Are Often Higher Than Investors Realize James J Angel Todd J Broms Gary L Gastineau The bid–ask spread alone does not tell the true cost of trading an exchange-traded fund (ETF). The market prices on most ETFs frequently deviate from their net asset value (NAV) because of fluctuations in market demand and supply. An investor needs to measure the true cost of an ETF trade as the difference between the fund's current transaction price and its NAV at that point in time.Author James Angel , from Georgetown University , discusses his article, ETF Transaction Costs Are Often Higher Than Investors Realize , published in The Journal of Portfolio Management ’s Spring 2016 issue. In this article, Angel and co-authors Todd Broms of Broms Asset Management and Gary Gastineau of ETF Consultants.com offer their analysis of how and why ETF market prices deviate from their NAVs. %U https://pa.pm-research.com/content/iijpracapp/4/2/1.2.full.pdf