liquid stocks 15, Most Liquid Stocks And ETFs

In August, 2010, it only took 112 stocks to account for half of all daily volume, and the top 10 accounted for 21% of all daily trading volume.

Source: Abel/Noser

These are highly liquid stocks that the high-frequency trading computers love to trade. But because of that, these are also stocks and ETFs that have the smallest spreads:

Most Liquid Stocks And ETFs For August 2010
Symbol Principal
Per Day
% of Daily
Volume
Avg Shares
Per Trade
Avg Trades
Per Minute
SPY $19,457,771,520 10.7% 397 630
AAPL $3,470,167,552 1.9% 172 143
IWM $3,331,887,360 1.8% 392 247
QQQ $2,823,571,968 1.5% 611 177
EEM $2,171,438,848 1.2% 509 218
BAC $1,533,855,360 0.8% 748 256
HPQ $1,427,675,520 0.8% 247 250
INTC $1,378,568,192 0.8% 457 290
CSCO $1,365,347,456 0.7% 433 275
POT $1,336,333,696 0.7% 171 115

If you're curious, the next 10 symbols on the list (in liquidity order, most to least) are:

MSFT, C, XOM, JPM, GLD, GOOG, SDS, EWZ, EFA, and XLF.

Because these stocks and ETFs are so liquid (each security trades over $1B per day), they have an active options market, too. That results in smaller spreads on their options, which is good if you ever need to adjust a covered call position.

Volume should not be the only criteria you use when choosing investments. However, more liquidity never hurts and it can be used as one factor of many that you consider.

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