|
|
|
|
As exchange trade funds push for more actively managed offerings, transparency will be the largest hurdle. Not only does it offer problems with front running, but transparency will also allow other investors to mimic the actively traded ETF allowing them the advantages of the fund without the expenses. This is called free riding.
Actively traded ETF funds, should they be allowed to be offered will give a more tax efficient and lower cost alternative to similar types of mutual funds. Once problems such as free riding can be solved, these types of funds will be generally accepted for the short term trader but may hold some benefits for the long term investor as all. [ Close Window ] This site and all its contents are copyright 1998-2005 by Paul Petillo/Editor/BlueCollarDollar.com. All Rights Reserved. |