Asia ETF Listing Agreement to Help Liquidity

According to a Dow Jones Newswire report, the Tokyo Stock Exchange and Taipei Stock Exchange have agreed to cross-list Exchange Traded Funds as early as the first half of 2008.

Because the ETFs will be accessible to more investors, the cross listing agreement should increase trading volume and improve liquidity. As noted in an article in Financial-Planning last November, lightly traded ETFs tend to have a higher bid-ask spread which, in turn, work to reduce investor returns.

Be Sociable, Share!

Powered by WordPress. Designed by Woo Themes