In times of turbulence and uncertainty, liquidity is a prized possession in financial markets. One of the interesting features of the ETF vehicle is its ability to provide increased liquidity relative to the underlying positions they track. This article from David Nadig describes how when liquidity dries up in the bond market, ETFs are able to provide more accurate fair value assessments of the underlying portfolio. This mechanism of price discovery affords investors liquidity where there was none (or limited) previously. Now, whether or not the increased liquidity that these products provide is in the best interest of long-term investors is another question, but they do come with an enhanced liquidity profile.