What is Trading Volume?

Practical Thresholds

• > 500,000 shares/day — Very liquid, no concerns
• 50,000 - 500,000 — Liquid enough for most investors
• < 50,000 — Low volume, bid-ask spreads may be wider

Why It Matters

Low volume doesn't mean an ETF is bad — some excellent Canadian ETFs have modest volume. But if you're trading significant amounts, use limit orders rather than market orders to avoid paying an unfavorable price.