Part II: Five Low Volume ETFs To Consider

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Back in March, we went deep into the ETF universe looking for low volume funds that might be worth having a look at for investors of all stripes. That list turned up a commodities ETN, two emerging markets plays, a small-cap play on Australia and a global way to play defense with consumer staples. For those that are new to the ETF game, volume is a more important consideration here than it is with regular common stocks. A traditional stock can be home to light volume and still be considered a decent stock. If nothing else, light volume for a given stock doesn't necessarily mean the stock will be delisted. On the other hand, an ETF with light volume is vulnerable to being closed by the issuer because that lack of volume could mean it is costing the fund's sponsor more money to keep the ETF trading than is worthwhile. That doesn't mean all light volume ETFs will go the way of the dodo bird. Many will see their volume increase and flourish. Here are five more currently low volume ETFs with the potential to survive and thrive. (Only ETF's with average daily volume of less than 50,000 shares were considered for this list.) Global X FTSE Argentina 20 ETF
ARGT
: The Global X FTSE Argentina 20 ETF made its debut in March and has been in a slide ever since, falling more than 20%. Most of that can be blamed inflation-stricken Brazil weighing on all LatAm ETFs. While ARGT has not been able to escape that carnage, it is one to watch in the future. Argentina has a surprisingly strong GDP growth forecast and when investors start to realize that, this ETF should thrive as it is the only Argentina-specific ETF on the market today. Average daily volume: 5,130 shares. Guggenheim ABC High Dividend ETF
ABCS
: The Guggenheim ABC High Dividend ETF made its debut in early June and considering the rocky market environment since, hauling in over $6.2 million in assets under management isn't too shabby. The ABC stands for Australia, Brazil and Canada, but the problem is the “B” accounts for over 51% of the new ETF's weight and that may be keeping some traders and investors at bay. Still, dividends are dividends and that should boost the fortunes of the Guggenheim ABC High Dividend ETF going forward. Average daily volume: 5,200 shares. ETFS Physical Asian Gold Shares
AGOL
: Considering what this ETF is (an ETF backed by physical gold), what it does (stores the gold in Singapore) and the current gold bull market, it's simply stunning that its average daily volume is less than 2,600 shares. If you're looking for gold that Uncle Sam can't seize, AGOL is one ETF to consider. IndexIQ South Korea Small Cap ETF
SKOR
: With average daily volume of over 18,800 shares, SKOR is almost the volume champion of this list. Going forward, it could also be the best or second-best alpha producer. All emerging markets have been beaten up this year. Dependable and less volatile South Korea is no exception. When emerging markets come back into vogue, investors will push cash into South Korea and SKOR will be a winner...eventually. iShares FTSE EPRA/NAREIT Developed Real Estate Index Fund
IFGL
: If there were a limit on how many acronyms can be squeezed into the name of one ETF, IFGL would be in violation. That's OK because with average daily turnover of almost 43,500 shares, we have crowned a volume king for this list. We also have a yield king at almost 7.4% and there's your reason to consider IFGL. Waiting for a test of support at $26 to see how firm that support is the way to play this ETF.
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