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0 pointsC1sc0cat6y ago0 comments

They are mostly not doing physical replication (physically owning all the shares) but using synthetic means.

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4 comments · 2 top-level

0xcafecafe6y ago· 2 in thread

Not 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-...

C1sc0catOP6y ago

That wasn't what the Article being critiqued said though.

0xcafecafe6y ago

Correct. There are index mutual funds and index etfs. The article seemed to refer the latter.

FabHK6y ago

Source? 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.

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