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not trading the original shares, That depends on the type of ETF. As far as I understand a "Physical ETF" does hold the securities of the index it follows. In
by mafribe 11y ago
not trading the original shares,
That depends on the type of ETF. As far as I understand a "Physical ETF" does hold the securities of the index it follows. In contrast, "Synthetic ETFs" track an index using
swaps and collateral.
- chiph 11y agoI assume they disclose what type they are? Also, any idea what the ratio of synthetic ETFs to physical ETFs may be? If it's low, it's not a potential market problem.
- mafribe 11y agoThe ETFs I looked at do disclose this. I guess it's a legal requirement, since it affects risk structure. No idea about the ratio.
- nkd 11y agoIt's worth noticing many "Physical ETF" lend the securities they hold, in order to increase the ETF performance.