However, most traders have a misconceived notion about volume in ETFs. What really matters is true liquidity, or the liquidity in underlying component holdings.
“People are going to say, ‘oh, it only works if the ETF has a low on-screen volume or perceivable trading volume.’ It’s not the case.” Rosenberg said. “It really doesn’t matter if the ETF trades a million shares a day or a thousand shares a day.”
Watch the video below to see the full interview with Ed Rosenberg.
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