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 Wed, 22 May 2013 18:16:36 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: right http://blogs.reuters.com/felix-salmon/2012/01/20/etf-datapoints-of-the-day-market-share-edition/comment-page-1/#comment-35207 right 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. 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.

]]> By: coldpueblo http://blogs.reuters.com/felix-salmon/2012/01/20/etf-datapoints-of-the-day-market-share-edition/comment-page-1/#comment-35199 coldpueblo 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. 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.

]]> By: TFF http://blogs.reuters.com/felix-salmon/2012/01/20/etf-datapoints-of-the-day-market-share-edition/comment-page-1/#comment-35196 TFF 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. Have you considered transaction costs? Certain ETFs are available without transaction fee through certain brokers. That would tend to drive business their direction.

]]> By: KidDynamite http://blogs.reuters.com/felix-salmon/2012/01/20/etf-datapoints-of-the-day-market-share-edition/comment-page-1/#comment-35195 KidDynamite 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/blog/10811-the-etf-first-mover-effect.html? on topic from today, Felix:

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

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