"ETF liquidity is not primarily determined by AUM. It is determined by market structure, specifically how ETFs connect secondary market trading with the liquidity of their underlying securities."
Quoted passages come from the articles on this site.
Covered in: Why ETF Liquidity ≠ AUM · Free ETF diagrams
Related terms
Go deeper: books by Will Lee, CFA
For traders, PMs, and ETF specialists: a practitioner's deep dive into APs, market makers, NAV vs. iNAV, and trading under stress.
Get the ETF Liquidity Cheat Sheet
Subscribe to receive a free two-page ETF Liquidity Cheat Sheet, plus an occasional email when a new explainer is published.
No spam. Unsubscribe anytime.
Disclaimer
This material is provided for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security.
All views expressed are the author’s own and do not represent the views of any employer or affiliated organization.