ETFs, in general, involve greater risk (in addition to) than the underlying equity. In Singapore, average consumers (those without a background, or higher degr

ETFs, in general, involve greater risk (in addition to) than the underlying equity. In Singapore, average consumers (those without a background, or higher degree in Finance) are not allowed to purchase (even through their broker) an ETF without first having taken a series of course material, and exams. (pretty good idea if you ask me). From the course, they highlighted synthetic replications risks as consisting of credit risk of the counterparty when swaps are used by the issuer to exchange, performance of the assets held by the ETF for the performance of the underlying index. Blackrocks' IVV [1] has a cost structure of 0.07%, which is pretty good - and does an extremely good job of tracking the S&P500. It uses, "Representative Sampling" - from their prospectus [2] BFA uses a representative sampling indexing strategy to manage the Fund. “Representative sampling” is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to that of the Underlying Index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of the Underlying Index. The Fund may or may not hold all of the securities in the Underlying Index. [1] https://www.ishares.com/us/products/239726/ishares-core-sp-500-etf https://www.ishares.com/us/products/239726/ishares-core-sp-5... [2] https://www.ishares.com/us/library/stream-document?stream=reg&product=I-SP500&shareClass=NA&documentId=925833~926358~926348~925661~925593&iframeUrlOverride=/us/literature/prospectus/p-ishares-core-s-and-p-500-etf-3-31.pdf https://www.ishares.com/us/library/stream-document?stream=re...