Not exact matches
Many
ETF industry sources have told IndexUniverse.com that
high - speed computer - driven trading has cut profit margins for market makers, and therefore seriously curtailed their incentives for taking on the financial risks associated
with providing trading
liquidity in particular securities.
Investors should also find ample
liquidity in the SPDR Bloomberg Barclays
High Yield Bond
ETF (JNK),
with $ 436.71 M in daily dollar volume.
According to Greenwich Associates, even
with the relatively
high adoption rates for bond
ETFs in Canada, continuing concerns over
liquidity in fixed income will likely continue to drive growth in future.
Large index
ETFs, which have real - time net asset values (NAVs), have not helped this pricing problem in fixed income but, in parts of the fixed income market where there is less
liquidity (such as
high yield bonds), sourcing issues can be more difficult — particularly in a market sell - off where buyers may not be readily available
with sufficient capacity to take on bond inventory.
Today's
high liquidity in
ETF trading volumes allows investors to quickly enter and exit the market
with low bid - ask spreads, which further reduces the total cost of investing.