Chris Hempstead, head of ETF sales at KCG, one of the largest providers of providers of ETF liquidity and execution services, joined ETF Trends Publisher Tom Lydon at Charles Schwab Impact Conference in Denver to talk about the roles liquidity providers play in the ETF marketplace and how money managers can work with these firms to better understand ETF liquidity.
“What we’re trying to do is get people to understand what’s a normal market, when is it good to trade and is there depth of liquidity in the quote,” said Hempstead.
Hempstead points out intraday net asset value, or “INAV,” can be a useful tool for advisors looking to properly asses the value of a U.S.-focused ETF’s underlying index, but he adds that INAV for ETFs focused on foreign markets can be somewhat stale during the U.S. market day because most emerging markets (and some developed markets) are closed for part or all of the U.S. session.
KCG is the lead market maker for over 650 ETFs.
Watch the video below to see the full interview.
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