E F Nuttin

Do ETF Investors Care About Expense Ratios?

If a ETF wants to gain more market share all the have to do is buy and sell their own ETF for the specific reason of creating volume. We don't like huge spreads between bid and ask.

Do ETF Investors Care About Expense Ratios?

The key to selling ETF's is who hits the market first. If you hit the market first you can charge more, because you have a monopoly in your sector and you get the volume that people want when trading. I love Proshares ETF's and would only consider Rydex double ETF's in my taxable account, if I was going to hold it at least a year. Rydex doesn't have the daily volume to get in and out. If 401k's used ETF's the lower cost one would dominate, but most people who buy ETF's are traders.