Synthetic vs. Physical ETFs: What Singaporean Investors Should Know
Exchange-Traded Funds (ETFs) have become a popular investment vehicle, offering a way to diversify portfolios without the need for direct stock picking. With the increasing accessibility of global markets and investment options, understanding the differences between the two main types of ETFs—synthetic and physical—has become essential for investors.
This article explores the key distinctions between synthetic and physical ETFs and provides insight into what Singaporean investors should know to make informed investment decisions.
Understanding ETFs: A Primer
Before diving into the specifics of synthetic versus physical ETFs, it’s important to understand what ETFs are and how they work. At their core, ETFs are investment funds that hold a collection of assets, such as stocks, bonds, or commodities, and are traded on stock exchanges just like individual securities. T
he main attraction of ETFs is their ability to offer broad market exposure with the convenience of trading on a stock exchange, … READ MORE ...