How to Sell ETF Shares: A Simple Guide for Investors

Owning ETF shares as an investor can provide you with a strong, flexible investment. ETFs are still a relatively new investment compared to most other securities. Therefore, there are many investors that are still unfamiliar with how they work. The performance of an ETF is going to be similar to a mutual funds because they are highly diversified. However, the way that they are bought and sold is different from a mutual fund. Here are the basics of how to sell your ETF shares.

How ETF Shares Are Sold

With an ETF your shares can be sold very easily through an exchange. The term ETF stands for Exchange Traded Fund. Therefore, that means that the funds are traded on an exchange just like a stock. This makes ETFs extremely fluid and easy to move. Most ETFs can be bought or sold at any time as long as the exchange is open. 

There will be a bid/ask spread to work with when you buy or sell the ETF as well. This means that you will put in an order for the ETF and someone will fill it at a slightly different price. Regardless of what ETF you have, there is a good chance that you can sell it quickly.