Market for trading ETFs

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  • BenutzernameMoneyland User Questions
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  • Registriert seit1/27/17
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Is there a strong market for ETFs? Can ETFs be traded with a similar level of liquidity to stocks and currency?

 
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  • BenutzernameMoneyguru von moneyland.ch
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  • Registriert seit8/4/15
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Hi there,

As with other securities, liquidity levels depend on the specific exchange traded funds (ETFs) in question. Shares in well-known ETFs issued by established fund managers are generally highly liquid and can be bought and sold much like popular stocks. The less popular and known an ETF is, the less liquid its shares are and the higher the risk that you will not find a buyer on your terms.

For this reason, it is important to not only consider the total expense ratio and performance of an ETF, but also its liquidity in the marketplace.

Best regards from Moneyguru

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