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.
ETF assets grew $20.8 billion or 3% in August according to State Street Global Advisors. ETF assets now total $661 billion across 755 ETFs. Market Cap ETFs saw the biggest growth in August, increasing $9.6 billion or 6.0%.
US equities rallied 7% last week on stronger than expected earnings reports. The largest broad market ETF, the SPDR S&P 500 (SPY), finished last week at $94.13, up $6.17 or 7% from the prior week’s close.
Assets in the U.S. ETF industry ended March at $482 billion, up $31 billion or 6.8%. In the March ETF Snapshot report, State Street Global Advisors found that the biggest driver of growth were International ETFs with assets up $10 billion or 12.5%.
After closing at a new multi-year low on Monday, stocks rallied through the rest of the week on the back of reassuring remarks from bankers and administration officials. The broad market ETF SPDR S&P 500 (SPY) closed the week at $76.09, up 12% from Monday’s low of $68.11.
After the Federal Government threw a lifeline to Citigroup (C) at the beginning of last week, the large cap financials have recovered nicely. The Financial Select Sector SPDR Fund (XLF) is up 35% from the close on November 20. Over the same time period, the S&P 500 (SPY) is up 19%.