12 November 2013

Co-Authors

Alex Kemmsies

Associate

Scott Burrill

Managing Director

Justin Schack

Managing Director

Rosenblatt Securities Inc.
New York +1 212 607 3100
Dublin +353 1 855 9125

Inquiries to
globalexchangeanalysis@rblt.com

TRADING TALK
Rosenblatt’s Monthly ETP Review: October

Notable ETP News

Costs vs. Fees in ETF Trading
—Barron’s

This may sound scandalous, but here goes: There's more to selecting the best exchange-traded funds than low fees. Tight bid-ask spreads, hewing to the index, and an ability to trade at a price that reflects the value of a fund's components are three important factors that are less obvious than expense ratios, and particularly important for traders.

Our Take: Smaller, illiquid ETPs often carry higher “hidden” costs associated with spreads, tracking error and dislocations with NAV. In some cases wide spreads contribute...

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