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S&P tracking ETFs are the most liquid equity instruments, but $100b is large even for them. The largest ETF by assets is SPY, with $250b. 'Liquid' for you or me
by kolbe 8y ago
S&P tracking ETFs are the most liquid equity instruments, but $100b is large even for them. The largest ETF by assets is SPY, with $250b. 'Liquid' for you or me or even Stevie Cohen isn't even close to the same thing as 'liquid' for Warren Buffett.
http://etfdb.com/compare/market-cap/ http://etfdb.com/compare/market-cap/
- whack 8y agoSPY has a daily trading volume of $25B. I would have thought that this would allow someone to liquidate ~$1B every day, without distorting the market. This would have allowed Buffett to raise the cash needed for any acquisitions, in a relatively short period of time. Is there any hard data on how big a trade would have to be, to cause significant price distortion? Speaking of which, it's also common for acquisitions to be carried out using stock, instead of cash. Given that acquirees are open to getting paid in stock, I would have thought they would be open to getting paid in SPY. https://seekingalpha.com/article/4164368-spy-cost-liquidity https://seekingalpha.com/article/4164368-spy-cost-liquidity https://www.investopedia.com/ask/answers/06/macashstockequity.asp https://www.investopedia.com/ask/answers/06/macashstockequit...