Investors still wary on synthetic ETFs

A survey by the firm of over 800 professionals and individuals shows 82% of respondents expressed concern about counterparty risk in ETFs, suggesting swap-based providers have failed to convince investors of the safety of their methodology Roughly the same proportion of investors judged the distinction between synthetic and physical replication as very or somewhat important. Among those investors who are unsure whether they will invest in ETFs in the future, 33% of professional and 23% of individual investors say they are concerned about the risks of synthetic funds. The onus for c...