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There's a cost associated with buying and selling the underlying equities which is proportional to AUM.
by slivym 8y ago
There's a cost associated with buying and selling the underlying equities which is proportional to AUM.
- jonknee 8y agoIs there? For large index ETFs that is surely done by broker dealers arbitraging miniscule pricing differences between the underlying and ETF price.
- fiveFeet 8y agoHmmm... why? What is so different between trading 100 shares vs 1,000 shares vs 100,000 shares? Trading is automated enough that a linear cost is not justified.