Average Daily Volume (ADV) Definition

Learn the definition of average daily volume (ADV) and other ETF terminology from the etf.com glossary.

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Reviewed by: etf.com Staff
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Edited by: etf.com Staff

Learn more about Average Daily Volume (ADV)

Average daily volume (ADV) refers to the average number of shares traded over a specific period, typically measured on a daily basis. ADV is a key metric used to assess the liquidity and popularity of an ETF. ETFs with higher ADV tend to be more liquid and have tighter bid-ask spreads, making them easier to buy and sell at a fair price. ADV is calculated by dividing the total trading volume of an ETF over a specific period by the number of trading days in that period.

Related Terms

Liquidity, Exchange-Traded Fund (ETF), Trading Volume

ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.