Ron P

Hi Scott. I don't understand the popular assumption that liquidity risk is higher for passive ETFs than for actively managed ETFs, let alone closed end funds. Perhaps not your view? The attached Boomberg article highlights the buffering effect of secondary markets through periods of volatility and notes the liquidity characteristics of underlying assets as key determinant in market clearing efficiency. The active manager, pursuing outperformance through more concentrated, idiosyncratic investments, surely takes on an equal, if not greater, amount of liquidity risk as a general rule? I'd be interested in your thoughts.