Top 3 ETFs Dominating the Market With Huge Trading Volumes

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Ishares China Large-Cap ETF Notizia

Ishares Russell 2000 ETF,The Financial Select Sector SPDR® Fund

Stocks Analysis by MarketBeat.com (Nathan Reiff) covering: iShares China Large-Cap ETF, iShares Russell 2000 ETF, The Financial Select Sector SPDR® Fund. Read MarketBeat.com (Nathan Reiff)'s latest article on Investing.com

ETF trading volume is one important factor to consider, as it may impact or reflect the fund's liquidity.

Exchange-traded funds offer investors the prospect of targeted, thematic portfolios and easy, hands-off management. Particularly considering that many of the most popular ETF strategies feature multiple funds from a variety of providers—and, as a result, competition for customer dollars—fees are often low. But ETFs are not without risks, including the potential for shutdown due to low assets, heightened risk posed by leveraged or inverse funds, and plain old market risk as well.

has a one-month average trading volume of more than 105 million shares, making it one of the most-traded ETFs currently available. This fund is a popular choice for accessing the large-cap segment of the Chinese equity market. Chinese stocks have been particularly attractive to investors since the Chinese government announced stimulus measures earlier this year, launching a rally.

It is likely that the Federal Reserve's September interest rate cut, the first in multiple years, has spurred this increase in activity. The strong performance of the fund relative to the broader market has also helped, as XLF has outperformed thewith a total return of more than 41% in the last year. As a non-specialized sector fund, XLF offers investors a low expense ratio and access to about 75 large-cap financial stocks from U.S. markets.

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