Taking a dive into the ETF space, let us look at the ticker SPY, which is arguably one of the most notable and it tracks the S&P 500 index. SPDR is the company that created this product and is traded heavily on a daily basis. Evaluating an ETF can be unique because each product warrants different filters.
Filtering the SPY, first you want to see how the liquidity is. This goes for most products, but you want to ensure you can enter and exit your position as you please. Some ETF’s may not be as easy to enter and exit as it is not heavily traded or it follows a small sector. With SPY, you should experience no issues entering and exiting a position.
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