A study released by Morningstar reports that investor protection within synthetic Exchange Traded Funds (ETFs) is rising.
Nine out of ten investors are concerned about synthetic exchange traded funds (ETFs) on the back of a series of warnings from global regulators about their dangers, research suggests.
Despite all the noise around sythetic ETFs, there is just as much risk in physical ETFs if counterparty risk is not diversified.
Some 80% of advisers have said regulatory scrutiny on exchange traded funds (ETFs) echos their own concerns about the products.
Synthetic ETFs have grown ever more complex in how they are structured and in the underlying exposures the funds aim to achieve. All of which has caused these investment products to be subjected to increasing levels of scrutiny.