Investors who ignore bid/ask spreads can be making an expensive mistake. In normal markets spreads can negate any difference in expense ratios, while in volatile markets spreads can swamp fee differences several times over.
The market’s “Fab Five” technology stocks—Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google (GOOGL and/or GOOG)—often called by their acronym FAANG, had a bad day on Friday after research notes from Goldman Sachs, Deutsche Asset Management and others warned that these stocks were too expensive. Owning these five stocks, which together accounted for…