TY - JOUR T1 - Practical Applications of Create or Buy: <em>A Comparative Analysis of Liquidity and Transaction Costs for Selected U.S. ETFs</em> JF - Practical Applications SP - 1 LP - 5 DO - 10.3905/pa.2014.1.4.049 VL - 1 IS - 4 AU - Milan Borkovec AU - Vitaly Serbin A2 - Connett, Wendy Y1 - 2014/04/30 UR - https://pm-research.com/content/1/4/1.13.abstract N2 - Create or Buy: A Comparative Analysis of Liquidity and Transaction Costs for Selected U.S. ETFs Milan Borkovec Vitaly Serbin A properly calibrated, ETF-centric price impact model is useful for institutional investors, market makers and ETF (exchange-traded funds) sponsors. Create or Buy: A Comparative Analysis of Liquidity and Transaction Costs for Selected U.S. ETFs , which appeared in the Summer 2013 issue of The Journal of Portfolio Management , introduces a model to analyze liquidity and trading costs and details how portfolio managers can use it.The article outlines the differences in liquidity between ETFs and common stocks liquidity and compares their cost characteristics, including the impact of the creation/redemption process. “We are not suggesting cookbook strategies. We are giving clients the tools,” Co-author Milan Borkovec states in this Practical Applications report.Borkovec is Managing Director and Head of Financial Engineering at ITG in Boston. Co-author Vitaly Serbin is Director of Financial Engineering’s Portfolio Analytics Research Group at ITG . ER -