Fundamentally, the liquidity profile of any ETF is driven by its underlying securities
In other words, the primary market costs of similar active and passive market exposures should be the same, as they incur very similar commissions, taxes, and other charges.
Commonly, the oldest and largest passive ETFs have tighter spreads. For active ETFs, we expect spreads to evolve over time as the adoption of active ETFs increases. Similar developments can already be noticed for relatively new ESG/Sustainable ETF strategies, as more clients adopt these products.
What goes into an ETF price?
09ab221212093730