ETF liquidity after the Japan and Middle East crises

As the life-blood of ETFs, liquidity is vital. While robust trading volumes show a sanguine outlook for ETF liquidity, unforeseen market pressures in the future could put this to the test. Indeed, average monthly volumes of ETFs traded on Xetra, Europe's first trading venue in Germany, have seen spectacular growth since 2000, reaching over $21bn so far this year. Assets under management on the platform grew nearly 30% in the year to the end of February 2011, reaching $116.2bn, according to Blackrock. This paints a very positive picture for ETFs, whose tradability is also ultimately e...