ETF Education: Understanding ETF Liquidity
Yahoo Finance·2025-09-12 05:30
For individual stocks, liquidity is about trading volume and its regularity—more is better. For ETFs, there’s more to consider. An ETF Isn’t A Stock ETFs are often lauded for their liquidity and single-stock trading characteristics. Truth is, they’re similar. If an ETF doesn’t trade a certain number of shares per day (e.g., 50,000), the fund is illiquid and should be avoided, right? Wrong. It’s a plausible assumption from a single-stock perspective, but with ETFs, we need to go to a level deeper. The ke ...