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They are mostly not doing physical replication (physically owning all the shares) but using synthetic means.
by C1sc0cat 7y ago
They are mostly not doing physical replication (physically owning all the shares) but using synthetic means.
- 0xcafecafe 7y agoNot really. The most popular index funds physically invest their capital in the stocks making up the index: https://www.investopedia.com/articles/markets/101415/4-best-sp-500-index-funds.asp https://www.investopedia.com/articles/markets/101415/4-best-...
- C1sc0cat 7y agoThat wasn't what the Article being critiqued said though.
- 0xcafecafe 7y agoCorrect. There are index mutual funds and index etfs. The article seemed to refer the latter.
- FabHK 7y agoSource? In the jurisdictions I'm familiar with, synthetic ETFs come with special warnings (even in the fund name), and they're definitely not the majority.