What is the bid-ask spread on an ETF?
It's the difference between the highest buy price (bid) and lowest sell price (ask), and it's a key trading cost.
February 17, 2026
The bid-ask spread is the gap between what buyers are willing to pay (bid) and what sellers are asking (ask). When you buy at the ask or sell at the bid, the spread is part of your trading cost.
In very liquid ETFs, spreads can be tiny. In smaller or more niche ETFs, spreads can be noticeably wider, especially during volatile markets or outside peak trading hours.
A practical habit is to check the spread before trading and use limit orders if it's wide. Over many transactions, spreads can cost more than the ETF's expense ratio.
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