There is an interesting article back from 2018 that says
If you had bought the SPY at the last second of trading on each business day since 1993 and sold at the market open the next day — capturing all of the net after-hour gains — your cumulative price gain would be 571%
On the other hand, if you had done the reverse, buying the ETF at the first second of regular trading every morning at 9:30 a.m. and selling at the 4 p.m. close, you would be down 4.4%
I have backtested the same for 2020 and 2021, see the results below. Every day I was buying/selling just 1 share of $SPY.
Year | Buy at open, sell at close | Buy at close, sell at open |
---|---|---|
2020 | $4.88 | $45.42 |
2021 | $36.82 | $53.92 |
Disclaimer: all calculations made using BreakingEquity
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