Report sheds light on European ETF fees

Christos Costandinides, European Head of ETF Research and Strategy, and David Arnold, European Head of Index Research, have co-authored, In the ETF Labyrinth, Where Does The Thread Begin?report which finds that synthetic ETFs are the most profitable type of fund, generating an average gross profit margin of 69% for their issuers, whereas physically replicated ETFs produce an average gross profit margin of 64%. For synthetic ETFs, the report declares that issuers’ average total revenues are over 1% per annum, more than double the average fund management fee of 0.43%. Deutsche Bank reckons...