Are ETFs liquid assets?

Are ETFs considered liquid assets by your standards?

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July 2017
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At the end of 2016, there were 4,779 ETFs.  The most widely traded ETFs such as XLF, SPY, EEM, QQQ, and EFA would certainly be considered liquid from the standpoint of trading, but even though they could be sold and settled into cash within three trading days they would not be considered liquid assets.  Indeed, although open-end mutual funds settle into cash in only one day, they too would not be considered liquid assets.  Neither would be shown together with cash and cash equivalents on a balance sheet.

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