ETF loophole

3)Why buy ETFS at all if you can buy the underlying equity?
you can smaller amounts of ETF's, the ETF's could be better priced, they are more liquid with tighter spread to give you just three reasons
 
2)How can any individual investor know if they are really holding the underlying shares? If I buy an ETF what is stopping the market maker from simply buying the options and using the rest of the money for God knows what?
This is just rambling, rest assured they don't buy options ...
 
1)how is the market maker having slippage when they are making the market for the options of the ETFs themselves?
market makers in ETF's and options on ETF's are not the same person ... again rambling ...
and like I said they don't buy the options, and if they did they would have slippage ... more rambling ...
 
cvds16 said:
1)how is the market maker having slippage when they are making the market for the options of the ETFs themselves?
market makers in ETF's and options on ETF's are not the same person ... again rambling ...
and like I said they don't buy the options, and if they did they would have slippage ... more rambling ...
More...


that is not true, look at the CBOE market maker list for an example
 
cvds16 said:
you do understand the word 'person' ? ... it's a different job for someone within the same firm ...
More...

So finally you understand my original question!

now you are the one that seems to be naive, if it is at the same firm (which I have been alluding to in my first post), then there is absolutely an moral hazard
 
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