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