Q: Retired, dividend-income investor. At what point does liquidity become an issue? I currently own 4000+ shares of LIFE and am considering adding another 500 shares. I believe that LIFE trades roughly 9000 shares/day.
LIFE is my proxy for the HC sector and it is my intent to hold for the long term. I know I could buy another HC ETF, like HHL. However I run a concentrated portfolio.
Thoughts? Thanks....Steve
LIFE is my proxy for the HC sector and it is my intent to hold for the long term. I know I could buy another HC ETF, like HHL. However I run a concentrated portfolio.
Thoughts? Thanks....Steve
5i Research Answer:
If one is a LT holder, we would not have big concerns. Many days LIFE trades more than 20,000 units, and as an ETF the market maket has more flexibility in cancelling/creating units by making transactions in the underlying shares. We would be fine with this.