ETFs have created opportunities for investors by offering market access, transparent pricing, liquidity and easier trading execution. But some believe ETFs may just be a bubble waiting to cause trouble. Hear the expert’s opinions.
Strong client relationships and new technologies create competition between liquidity venues, which results in more choice and opportunities for investors. ETFs are emerging as a new and valuable source of liquidity.
If a major liquidity event occurs in the next twelve months, is the market prepared? A discussion of how potential changes to central bank support and rising rates may create short-term liquidity shocks, but not long-term systemic problems.
The liquidity landscape has changed significantly in the past decade with dozens of new, technology-driven participants specializing in different market niches. While this provides opportunity, a fragmented market also creates vulnerability in a crisis. A mixture of strong client relationships and new technologies can help unite fragmented liquidity venues.
The lessons learned from a decade ago have resulted in a safer marketplace for day-to-day business, but the market may be more vulnerable to outlying and exceptional events which will require Fed intervention to correct. How does the market value liquidity in such a time of distress?
Access all of our liquidity insights to help keep overall costs in check.
In volatile markets, liquidity is vital. Master liquidity to help deliver lower costs on your investments.
ETFs with low expense ratios don’t always have the lowest total cost. Learn to look beyond the obvious.
See all of our liquidity resources to find answers to your liquidity questions.
Source: Bloomberg Finance L.P., as of 12/31/2019.
The SPDR Liquidity Dashboard provides monthly primary and secondary market data and ranks the top 20 liquid ETFs.
Capital Markets Resources
of the ETF industry’s annual trading volume ($8.6T) — more than Vanguard and BlackRock combined — makes State Street SPDR ETFs the secondary market leader. 1
The SPDR® S&P 500® ETF’s (SPY) secondary market volume surpassed its top 10 competitors combined in 2019. 2
SPY and DIA trade, on average, almost triple what MSFT, FB, NFLX, AAPL, GOOGL, AMZN trade — combined. 3
SPDR Dow Jones® Industrial Average ETF Trust seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Dow Jones Industrial AverageSM (the "Index").
*Based on the secondary 180 day dollar trading volume, SPY and DIA ranked within the top 35 most liquid out of 2,177 US-listed ETFs. Source: Bloomberg Finance L.P., as of January 10, 2020.
1 Bloomberg Finance, L.P., as of December 31, 2019,calculations per SPDR Americas Research.
2 Bloomberg Finance, L.P., as of December 31, 2019, calculations per SPDR Americas Research.
3 Bloomberg Finance L.P., as of 1/10/2019. Based on 180 Day dollar trading volume. Past performance is not a guarantee of future results.
Important risk information
Investing involves risk, and you could lose money on an investment in SPDR Gold Trust ("GLD®").
Commodities and commodity-index linked securities may be affected by changes in overall market movements, changes in interest rates, and other factors such as weather, disease, embargoes, or political and regulatory developments, as well as trading activity of speculators and arbitrageurs in the underlying commodities.
Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
Diversification does not ensure a profit or guarantee against loss.
Investing in commodities entails significant risk and is not appropriate for all investors.
Important Information Relating to SPDR Gold Trust ("GLD®"):
The SPDR Gold Trust ("GLD®") has filed a registration statement (including a prospectus) with the Securities and Exchange Commission ("SEC") for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents GLD has filed with the SEC for more complete information about GLD and this offering. Please see the GLD prospectus for a detailed discussion of the risks of investing in GLD shares. The GLD prospectus is available by clicking here. You may get these documents for free by visiting EDGAR on the SEC website at sec.gov or by visiting spdrgoldshares.com. Alternatively, the Trust or any authorized participant will arrange to send you the prospectus if you request it by calling 866.320.4053.
GLD is not an investment company registered under the Investment Company Act of 1940 (the "1940 Act") and is not subject to regulation under the Commodity Exchange Act of 1936 (the "CEA"). As a result, shareholders of the Trust do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act or the protections afforded by the CEA.
GLD shares trade like stocks, are subject to investment risk and will fluctuate in market value. The value of GLD shares relates directly to the value of the gold held by GLD (less its expenses), and fluctuations in the price of gold could materially and adversely affect an investment in the shares. The price received upon the sale of the shares, which trade at market price, may be more or less than the value of the gold represented by them. GLD does not generate any income, and as GLD regularly sells gold to pay for its ongoing expenses, the amount of gold represented by each share will decline over time to that extent.
The World Gold Council name and logo are a registered trademark and used with the permission of the World Gold Council pursuant to a license agreement. The World Gold Council is not responsible for the content of, and is not liable for the use of or reliance on, this material. World Gold Council is an affiliate of GLD's sponsor.
GLD® is a registered trademark of World Gold Trust Services, LLC used with the permission of World Gold Trust Services, LLC.
For more information, please contact the Marketing Agent for GLD: State Street Global Advisors Funds Distributors, LLC, One Iron Street, Boston, MA, 02210; T: +1 866 320 4053 spdrgoldshares.com.