Market spread is the cost associated with buying and selling an ETF and it is the difference between the buy and the sell price for a given time.
Spread costs are factored into the buy and sell prices of each ETF by brokers and market makers that deliver and sell stock to fulfil our orders. The spread that they factor into the price depends on the market maker and the conditions of the market. InvestEngine does not add any amount to the spread and does not profit from the spread charged by our counterparties. We are unable to tell you how the spread is calculated since we have no part to play in how the spread is determined.
It is also important to note that some ETFs will be more liquid than others, the tighter the spread the more liquid the ETF tends to be.
The average impact of market spread is 0.07% a year for our Growth portfolios and 0.07% a year for our Income portfolios.