The Hidden Costs of Actively Managed ETFs: Bid-Ask Spreads and Market-Price Deviations

Active ETF investors face costs beyond fees, such as bid-ask spreads and market-price deviations from net asset value. For example, Nuveen Sustainable Core ETF traded at a 0.28% premium on April 24, 2025, and a 0.07% discount on May 15, 2025, resulting in a 0.35% round-trip cost for investors. This slippage can limit returns and is not relevant to mutual fund investors or passive ETFs like the SPDR S&P 500.