Bid/Ask Spread for VTI - Should we/I care?

I searched this forum and was actually impressed no-one had asked this question yet regarding VTI or any other liquid high volume ETF’s. So I decided to create an account and open the can of worms personally :wink:

Questions:

  1. Should we/I be worried about the Bid/Ask Spread of VTI?
  2. Can we/I beat the Bid/Ask Spread of VTI?
  3. Can you explain Bid/Ask Spread to me like I’m a (4) year old for good measure?
  4. Should we/I buy VTI and other similar ETFs at Market orders or Limit Orders?

Comments:

  • To have the least Bid/Ask spread as I understand it, we/I should buy VTI between 0700 PST - 1330 PST to reduce the spread to acceptable ranges of .01% - .02%.
  • Yes, I’m aware of SWTSX and its ability to trade off the NAV, which can be simpler for some. See my why statement :grin:

Why:

  • I personally rather vanguard funds, but I love Charles Schwab for their checking account and UI interface. I also like the liquidity of being able to pivot brokers if the time ever presents itself.

Thanks all!

I had never thought of the spread, but as you mention it the spread percentages are very low in my opinion, I personally wouldn’t be paying that much attention, since I would continue to buy whatever security from my same broker, in my case Vanguard, which already has the lowest fees.

But again, the spread difference is how many companies make their millions or even billions, but for me, chasing the lowest one for the amount of money I’m able to invest, is not really worth my time.