Drawing systematic value from the liquidity premium

February 12, 2018


Vanguard has researched whether you can draw systematic value from the public-equity liquidity premium. While some investments are more liquid than others, superior liquidity comes at a price.

Those who bear the additional difficulty of trading less liquid stocks should expect a return premium to compensate them for the additional cost and risk.

Learn more about why liquidity should carry a premium.


  • All investing is subject to risk, including possible loss of principal.

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