Synthetic Etfs
Posted: 9 Jul 2021
Date Written: August, 2017
Abstract
Exchange traded funds (ETFs) achieve their investment objectives by either owning a portfolio of securities (physical ETFs) or entering into swap agreements that deliver the returns of pre-specified indexes (synthetic ETFs). In this note, we provide an overview of how synthetic ETFs work and analyze collateralization levels for a group of synthetic ETFs that voluntarily report their collateral baskets.
Suggested Citation: Suggested Citation
Aramonte, Sirio and Caglio, Cecilia and Troland, Erin, Synthetic Etfs (August, 2017). FEDS Notes No. 2017-08-10, Available at SSRN: https://ssrn.com/abstract=3879318 or http://dx.doi.org/10.17016/2380-7172.2028
Cecilia Caglio
Board of Governors of the Federal Reserve System ( email )
20th Street and Constitution Avenue NW
Washington, DC 20551
United States
Erin Troland
Board of Governors of the Federal Reserve System ( email )
20th Street and Constitution Avenue NW
Washington, DC 20551
United States
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