When making decisions about how to implement the asset allocation strategy that your Strategic Plan calls for, it’s important to consider the average daily trading volume. The reasoning here is that low-volume ETFs tend to have wider bid-ask spreads, which means that it costs more to trade them than ETFs with more narrow spreads. In addition, the more an ETF trades, the lower the annual expenses tend to be. And finally, actively traded ETFs attract the bigger players, which means that nimble players like us can get in and out quickly, and not attract any notice, should conditions warrant.
With that, let me introduce the top 20 ETFs based on average daily trading volume. All of these would be appropriate for use in a low-cost, well-diversified investment strategy.
