[throwaway2037]

    > also note that index ETFs have tracking errors all the time (that's why arbitrage traders still have business!)

I call bullshit. We are talking about tracking errors in single basis points for well structured ETFs with good liquidity. This spread is still (at least!) 10x less than what a normie retail trader could achieve on their own -- trading the basket manually.

[super256]

I didn't mention retail traders anywhere. With arbitrage traders I mean those companies who do hft all the time and are directly connected to exchanges. They still do business.