Hypothetically if I were to dump say $1mill into XLKS.L, which was founded in 2009 and has an AUM of just 2 billion, should I be concerned about the liquidity of the fund, or rather the immediacy in which my buy (or sell) order goes through? The fund's 3 top components are Nvidia, Apple and Microsoft, and those are highly traded, so I figured I shouldn't encounter any issues, but I thought I'd ask the more experienced people here for insights.
You can read about XLKS.L here: https://www.invesco.com/be/en/financial-products/etfs/invesco-technology-sp-us-select-sector-ucits-etf-acc.html#Trading-%26-Security
Buying $1mill in a $2bill ETF – any possible issues I should be aware of, especially regarding liquidity?
byu/Ok-Yogurtcloset-9664 ininvesting
Posted by Ok-Yogurtcloset-9664
1 Comment
I don’t know the fund, but 2 Billion is a pretty decent fund size.
You can also check daily trades to see how hard it may be to exit