Here We Go Again: The ETF “Volume” Fallacy
Here we go again.
We do not pretend to be ETF sponsors (we're not) and we do not pretend to be APs (we're not), but we do pretend to understand a very simple concept which Howard Marks explained as follows more than two years ago:
The ETF can’t be more liquid than the underlying.
That's unassailable.
Note that what that doesn't say is that the underlying isn't liquid. The underlying may very well be liquid. Which means the ETF is commensurately liquid. Which means if you own the ETF you hav