Webinar: Debunking the Myths Around ETF Liquidity

For a topic that gets a lot of airtime, ETF liquidity still seems to be misunderstood by many people in the investment industry.

Given the extraordinary times that we are living in today and the impact that the Covid-19 pandemic has had on investments, taking a deep dive on ETF liquidity to fully understand it has never been more important. In this 45 minutes webinar, we’re debunking some of the longstanding misconceptions around ETF liquidity that we continue to hear from protagonists in the investment industry.

We start by providing a background on the ETF structure (what one is investing in, how does it trade, etc), as it is the first thing to look at when analysing liquidity of a product. We then take a deeper dive on some elements that are often overlooked and underpin ETF liquidity: market makers on exchange but also, and crucially, the underlying assets that the ETF is invested in that are bought and sold with primary market activity.

This webinar enables investors to walk away with a better understanding of liquidity within an ETF structure but most importantly, what to look out for when assessing whether they may have any concerns in liquidating their investments where exchange liquidity may not be representative of true liquidity, in particular during times of market stress.

Recorded on June 17th 2020.