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Most index funds are synthetic. They would not be possible if it was not possible to beat the index quite reliably.
by legulere 2y ago
Most index funds are synthetic. They would not be possible if it was not possible to beat the index quite reliably.
- whiplash451 2y agoCare to explain? Genuinely interested.
- legulere 2y agoWith a synthetic ETF you are not actually buying the titles of the index. There is a swap with a bank that guarantees you the same earnings as the index. Why would a bank do that if they cannot outperform the index? I'm just a layperson, so I might be wrong in some way that I don't understand