Q: Hello,
I would like to invest in the tech etf (evolve fangma etf) but the volume is low; is this an issue ? Also, is it better to stick to zqq instead for larger set of holdings in the tech space? Thanks very much.
I would like to invest in the tech etf (evolve fangma etf) but the volume is low; is this an issue ? Also, is it better to stick to zqq instead for larger set of holdings in the tech space? Thanks very much.
5i Research Answer:
On TECH liquidity, it is on the lower side. If you use limit prices, it shouldn't be much of a problem but it is certainly a factor to consider here. Our one other comment is that it might be just as ay to simply own the six underlying names in the ETF. This aviods fees and also gives a bit more tax efficiency (can rebalance/tax loss harvest on own terms).
We would probably prefer ZQQ just because it is more diversified and harder to replicate compared to TECH.