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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 contrast, "Synthetic ETFs" track an index using swaps and collateral.


I 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.


The ETFs I looked at do disclose this. I guess it's a legal requirement, since it affects risk structure. No idea about the ratio.


It's worth noticing many "Physical ETF" lend the securities they hold, in order to increase the ETF performance.




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