Comments on: ETF datapoints of the day, market-share edition http://blogs.reuters.com/felix-salmon/2012/01/20/etf-datapoints-of-the-day-market-share-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: right http://blogs.reuters.com/felix-salmon/2012/01/20/etf-datapoints-of-the-day-market-share-edition/comment-page-1/#comment-35207 Sat, 21 Jan 2012 17:10:41 +0000 http://blogs.reuters.com/felix-salmon/?p=11987#comment-35207 It’s all about the bid/ask spread. Most users of ETFs are relatively high-frequency trading hedge funds, so that matters a lot more than a couple basis points on fees.

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By: coldpueblo http://blogs.reuters.com/felix-salmon/2012/01/20/etf-datapoints-of-the-day-market-share-edition/comment-page-1/#comment-35199 Sat, 21 Jan 2012 01:35:30 +0000 http://blogs.reuters.com/felix-salmon/?p=11987#comment-35199 The expense ratio is only the most obvious expense. Commissions, the bid/ask spread, and NAV premium/discount apply to every purchase. The more popular funds have much smaller spreads and premiums. I cranked the numbers a few years ago, and realized I’d have to hold the fund for many years for the lower expense ratio to win out over the up-front reduced cost in terms of spread/premium.

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By: TFF http://blogs.reuters.com/felix-salmon/2012/01/20/etf-datapoints-of-the-day-market-share-edition/comment-page-1/#comment-35196 Sat, 21 Jan 2012 00:06:17 +0000 http://blogs.reuters.com/felix-salmon/?p=11987#comment-35196 Have you considered transaction costs? Certain ETFs are available without transaction fee through certain brokers. That would tend to drive business their direction.

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By: KidDynamite http://blogs.reuters.com/felix-salmon/2012/01/20/etf-datapoints-of-the-day-market-share-edition/comment-page-1/#comment-35195 Fri, 20 Jan 2012 23:39:06 +0000 http://blogs.reuters.com/felix-salmon/?p=11987#comment-35195 on topic from today, Felix:

http://www.indexuniverse.com/sections/bl og/10811-the-etf-first-mover-effect.html  ?

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