In the investment terrain, the concept of liquidity is pivotal to the functionality of the market, influencing the ease with which assets can be bought or sold. Equity Index Exchange-Traded Funds (ETFs), known for amalgamating the diversification of an index fund with the tradability of individual securities, have gained prominence among investors for their notable liquidity. This article delves into the liquidity of Equity Index ETFs, an aspect that profoundly affects their appeal and efficacy as investment tools.
What Defines the Liquidity of ETFs?
Liquidity in the context of ETFs is...