“A program to better incentivize market makers to create tighter markets, that’s attractive for us,” Noah Hamman, CEO of AdvisorShares, said in the article. “When you’re evaluating the total cost of buying and selling ETFs, you have commissions and you also have bid-ask spreads. Particularly for actively managed ETFs, where we don’t have the trading volume the big index-based ETFs have, something that gets a better price for your shareholders is better for us.”
Last month, iShares launched a handful of international equity ETFs listed on the BATS exchange. [iShares Expands International Equity ETF Line]
For more information on ETF indexing, visit our indexing category.
Max Chen contributed to this article.