When entering the site and if cookies are prevented from being saved, a message must be displayed
in a popup message box informing the user that their local browser settings are preventing
cookies from being saved and that cookies are required for the site to work. Exact text
to be provided for UAT. On OK click of the message, the user should be redirected to
the global landing page (currently ssga.com).
The COVID-19 pandemic has brought unprecedented challenges to markets across the globe, impacting liquidity across nearly all investment vehicles and asset classes. Despite these challenges, ETFs have performed well, providing market participants with liquidity and price discovery when they need it most.
The State Street Global Advisors SPDR Capital Markets team analyzed data from across the globe to better understand the performance of ETFs during the pandemic. Learn more about the report below.
Born out of the US stock market crash of 1987, ETFs have been tested by numerous market crises. During the COVID-19 crisis, surging ETF trading volume highlights that ETFs continue to function as originally intended — as buffers and sources of liquidity in stressed markets.
Globally, ETFs reached record trading volumes in March 2020.
ETF trading volumes in the US were highly correlated with March and April’s heightened volatility.
Even with record-high trading volumes, there was very little primary market activity; the secondary market acted as an additional layer of liquidity.
Throughout the pandemic, ETFs have provided investors with liquidity when they need it most. Continuous enhancements from both exchanges and regulators are also instrumental in promoting resilient markets during the crisis.
What does this mean for the future? If trading volume is any indication, expect to see ETF adoption continue to rise.