What is the volume of daily trades of the various S&P 500 ETFs, versus the daily trade volume of the constituent stocks?
I’m trying to understand whether a typical day is more about all the individual stocks driving the S&P 500 number, or vice versa?
I think this is a different question than what share of funds are active vs passive, I’m looking for data on volume of trades
Is S&P 500 the tail or the dog?
byu/Maritimewarp ininvesting
Posted by Maritimewarp
5 Comments
The whole kennel
The dog. Everything trades on future expectations.
If I were going to begin to understand this I’d look at the inflow in a month or quarter and compare it to the volume… probably 8 or 9 out of 10 units are market maker methinks
Individual stocks get considerably more trading volume.
It’s like trying to figure out if the ocean currents move because of atoms or molecules.
You’re not going to find an accurate estimate if the S&P500 moves 90% due to etfs or 90% due to individual stock volume. Stocks and etf volumes vary significantly every day and are so interlinked that there isn’t a practical answer beyond optimistic guessing.