Solactive: More competition will cut out 'hidden' turnover costs by index providers
Staggered rebalancing will help
Solactive: More competition will cut out 'hidden' turnover costs by index providers
Investors are paying "significantly" higher turnover costs due to index arbitrageurs taking up opposite positions at the point when an index rebalances, according to research conducted by Solactive.
The white paper, entitled (The Hidden) Index Turnover Costs: The Visible Price of Transparency, said due to the rules-based nature of indices and the fact rebalancing days are highlighted in advance, index...
