ETFs: Liquidity, the Bear Market and What's Next
Faltering markets are again testing the ETF market and its liquidity. How are ETFs holding up and what will rise from the fall? In study after study, investment teams cite liquidity and risk management among their ongoing priorities. At least as long as the “lower-for-longer” era continues, that need for liquidity won’t dissipate. And even when and if interest rates ever return to anything approaching “normal,” liquidity will still be highly prized. ETFs are at the forefront of meeting that investor demand for liquidity. The ETF wrapper can offer a flexible implementation option for investors seeking liquidity, even when liquidity in the underlying securities is constrained or temporarily unavailable.
State Street Global Advisors SPDR ETFs