Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Avoiding Zombie ETFs

|Includes: QQQ, SPDR S&P 500 Trust ETF (SPY), XLF

The expansion of the ETF industry could create a haven for "zombie" or low-liquidity ETFs.

 

Much has been made this past week about the occurrence of these zombie funds, and the tax that they exact on investors. This is a topic that I have covered exhaustively but that is important to return to frequently as more ETFs hit the market.

 

For every high-liquidity fund like the SDPR S&P 500 (NYSEARCA:SPY) and PowerShares QQQ (QQQQ) that changes hands millions of times a day, there are many low-liquidity funds with…READ MORE