An ETF does not require a certain amount of trading volume in order to be liquid. The underlying securities of the ETF determine its liquidity. Many within the industry do not grasp this reality and are missing out on a lot of quality ETFs.
Despite the fact that the managers of the Big 3 auto makers and their unions are in Washington begging for a bailout, the stock prices for General Motors(GM) and Ford (F) both continued their long declines. How are your ETFs affected?
Ford Motor Company (F) announced today that it plans to dilute shareholders to the tune of $500 million to buy back debt. As an ETF investor, you should be asking yourself – “Which of my ETFs are exposed to Ford?”.