![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPEJARggu43pXmetev8Dn4Xg5Czg4wevvG45Ll8N-FmJx_qR4QWPMp7pbTgf4J3P7e7gVHKVZGjt1rwWklfIlzu_6u6QykUf0T52y5kSxWqAEq14643RRT4TYVcAqtOZ8hygR6qPtybYt2/s400/ETF+volumes.png)
Tuesday, June 9, 2009
ETF volumes respond to risk levels
Here is an interesting observation from JPMorgan. ETF volumes move with the levels of volatility/uncertainty in the market. In November 2008 the daily ETF turnover reached 45% as people used SPYs, the Qs, XLFs, etc. to take macro views, to short where they otherwise couln't get a borrow, or to neutralize portfolios without having to puke out all their stocks. Think about it - nearly half the daily turnover in November was from ETFs. SPY is now the most liquid equity security in the world.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPEJARggu43pXmetev8Dn4Xg5Czg4wevvG45Ll8N-FmJx_qR4QWPMp7pbTgf4J3P7e7gVHKVZGjt1rwWklfIlzu_6u6QykUf0T52y5kSxWqAEq14643RRT4TYVcAqtOZ8hygR6qPtybYt2/s400/ETF+volumes.png)
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