Brokers - Editorial Neutrality?

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  1. #1

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    Brokers - Editorial Neutrality?

    A friend approached me today asking about a couple of niche etfs (LIT and BOTZ). Had never heard of them and got curious as to how he found them.

    They are both GlobalX managed etfs.

    Turns out it was a broker editorial article..

    Curious if anyone knows.. Do managers give incentives to brokers to promote their etfs? I suspect they do and it is logical that products should be marketed.


  2. #2

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    Can check with some ETF managers for you.. but from my experience its difficult to give transaction sized incentive to brokers on exchange listed product unless there is only 1 market maker (i.e. the fund issuer themselves).
    So if any incentive is probably more general marketing like.., e.g. the fund manager sponsor an event for the broker with client...