Synthetic ETF, unlike Physical ETF, utilize swaps and derivatives to replicate the performance of the market. A swap is a promise from a counterparty, usually an investment bank, to replicate the performance of the market or index. For instance, many leveraged and inverse ETFs use swaps and derivatives to achieve their performance objective on a daily basis.

While not as big in the United States, synthetic products make up a large portion of the ETF market overseas, especially in Europe.

External LinksEdit

Pages in category "Synthetic ETF"

This category contains only the following page.

Ad blocker interference detected!

Wikia is a free-to-use site that makes money from advertising. We have a modified experience for viewers using ad blockers

Wikia is not accessible if you’ve made further modifications. Remove the custom ad blocker rule(s) and the page will load as expected.