Morley Conn

is also out there looking at all of the trades that occur in their products.

And they are watching as well the bid-offer spread in their products.

They want that spread, obviously, to be as tight as possible.

They want the ETF issuers' investment experience to be as positive as possible so that they keep coming back as repeat buyers.

So they have an interest in that spread being as tight as possible.

The market makers also have a real interest in making sure that our ETF investors' experience is as good as possible.

That's why arbitrage is not... It's talked about.

That drives the creation-redeemed process.

But...

Arbitrage is not what market makers are out there looking to capitalize on and bid offer spread alone.

It's to trade as much as possible with ETF investors because that's how we're going to make our money.

The commissions and the bid offer spread.

If spreads are wide, investors aren't going to trade as much.

So the tighter the spreads are, the better off.

their experience is going to be and our experience as well.

You know, guys, we joke that as market makers, we want the investors to turn their portfolio over four times a day.

Well, that would be great.

More commissions, more bid offer spread.

Whereas the issuers want them to trade once a year.

They just want to keep those funds under management as long as possible.