Is it Worth Daytrading ETFs?
Raschke: In my opinion, no. There are far better vehicles for daytrading. Either futures or higher beta stocks are better. The problem is that few ETFs have the volume and liquidity for fast and effective execution, and the ones with sufficient volume tend to be the slower movers. ETFs are so broad and encompassing that they can be classified into two groups. A small number of ETFs are heavily traded and very liquid, such as the Spyder (SPY) that tracks the S&P 500, but most aren’t liquid enough for active daytrading. Many global and sector ETFs might only trade 50,000 shares a day. The vehicle you choose to use for daytrading depends on your execution platform, your commission structure, and your objectives. I know people who successfully trade the Spyder (SPY), but most professional daytraders will choose the E-mini S&P futures instead because of the greater leverage. The advantage of ETFs is that they cover such a broad spectrum. They allow investors to easily buy equities from many
