{"id":6344,"date":"2011-07-11T18:24:20","date_gmt":"2011-07-11T12:54:20","guid":{"rendered":"index.php\/2011\/07\/11\/etfs-are-extremely-profitable\/"},"modified":"2011-07-11T18:24:20","modified_gmt":"2011-07-11T12:54:20","slug":"etfs-are-extremely-profitable","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2011\/07\/11\/etfs-are-extremely-profitable\/","title":{"rendered":"ETFs are extremely profitable&hellip;"},"content":{"rendered":"<p>\u2026 for the banks that make them.<\/p>\n<p>Synthetic ETFs may actually be the most profitable type of fund around, generating an average gross profit margin of <strong>69% for their issuers<\/strong>, compared to physically replicated ETFs, that generate an average gross profit margin of <strong>64%<\/strong>. Much of these profits are delivered via ancillary activities like securities lending, securities finance and swaps. The money is being made <strong>elsewhere<\/strong>. <em>Outside <\/em>of the view of ETF clients. Clients are in fact unwittingly providing capital for banks\u2019 ancillary (and risky) ETF-related activities \u2014 while, incidentally, being directly connected to the risks that are being generated.<\/p>\n<p>Read more here: <a href=\"http:\/\/ftalphaville.ft.com\/blog\/2011\/07\/11\/617516\/if-you-pay-peanuts-for-etfs-you-get\/\">http:\/\/ftalphaville.ft.com\/blog\/2011\/07\/11\/617516\/if-you-pay-peanuts-for-etfs-you-get\/<\/a><\/p>\n<p>and here: <a href=\"http:\/\/www.indexuniverse.eu\/europe\/opinion-and-analysis\/7904-etf-providers-earn-double-funds-management-fees-says-deutsche-bank.html?Itemid=126\">http:\/\/www.indexuniverse.eu\/europe\/opinion-and-analysis\/7904-etf-providers-earn-double-funds-management-fees-says-deutsche-bank.html?Itemid=126<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u2026 for the banks that make them. Synthetic ETFs may actually be the most profitable type of fund around, generating an average gross profit margin of 69% for their issuers, compared to physically replicated ETFs, that generate an average gross profit margin of 64%. Much of these profits are delivered via ancillary activities like securities &hellip; <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[28],"class_list":["post-6344","post","type-post","status-publish","format-standard","hentry","category-your-money","tag-basic","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/6344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=6344"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/6344\/revisions"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=6344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=6344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=6344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}