Physical ETFs are less risky, say European investors
Research institute Edhec-Risk's annual European exchange-traded funds survey has found that European investors think physical replication is less risky than synthetic exposure
Investors believe that physically replicated exchange-traded funds (ETFs) are less risky than their synthetic counterparts, according to Edhec-Risk's annual European ETF survey of European ETF investors.
Fully replicated ETFs got a positive score of 2.28 out of three, according to the survey, while funds that engage in derivative swap contracts to gain exposure to an underlying only scored 1.41.
"Even though almost all physical replication ETFs engage in securities lending, investors fail to
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