How to Evaluate Liquidity in ETFs

Nov 1, 2012 / By James Picerno
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Trading volume—the traditional gauge of liquidity—can be highly misleading when you're assessing an ETF. After all, the supply/demand mechanics are very different from more traditional securities. Instead, two more ETF-relevant indicators will give you a better read on a fund's liquidity, with share volume coming in a distance fourth.

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