1Yr·

What is your opinion on synthetic etfs? As a rule, physical or optimized are always preferred.

I have transferred my portfolio from a robo to SC a few months ago and since then the

What would you do with this ETF? Just keep saving? Save for another physical/optimized S&P 500 and keep the position? Or sell the position and save for a physical/optimized one?

If I were to switch it would probably be to $CSPX, or do you guys have other recommendations?

Thanks in advance for your help.

20 Comments

Magician@income_magician_28

1Yr

Would keep it. Compare him if he has performed well used to continue saving, if not, then save another.

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Snopy@Snopy

1Yr

@income_magician_28 so in terms of performance, it is almost identical to comparable physical etfs. Even a touch better than the iShares etf. But 0.02% more expensive.

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Magician@income_magician_28

1Yr

@Snopy then continue to save and check again in a few years. I don't think the 0.02% is too wild.

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Norbert K.@Jabroni44

1Yr

When I hear synthetic, the movie "The big short" immediately comes to mind

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Sparfuchs@Reinecke

1Yr

I have never understood synthetic ETF. Where is the value creation generated here ?

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Snopy@Snopy

1Yr

@KleinviehmachtMist I have not fully understood synthetic Etfs. I know that the positions are replicated by means of swap but how exactly that works I do not know. Have the ETF only because I took him and did not want to trade to exchange him. That's where my uncertainty comes from. I also my only synthetic ETF, but with over 1 billion in volume, he seems to be not so bad.

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Sparfuchs@Reinecke

1Yr

@Snopy I stick exclusively to physical ETFs.

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Snopy@Snopy

1Yr

@KleinviehmachtMist yes am he I eig also. All other Etfs of me are physical :) have also just checked yesterday that this is synthetic 😂

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NiMe@NiMe

1Yr

@KleinviehmachtMist I assume that they save costs that they may pass on to customers.

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Sparfuchs@Reinecke

1Yr

@NiMe yes, but there is another risk behind it. I just looked it up again, I was again left behind with SWAP contracts.

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Deleted User

1Yr

Comment was deleted

Snopy@Snopy

1Yr

@Buy_and_Hold_Guni if you would read you would know that I have not decided for it but have taken the ETF from my Robo advisor so. My portfolio is irrelevant. I just want the opinion about the one product. Why do you need to know what else I have in my portfolio?

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Deleted User

1Yr

Comment was deleted

Snopy@Snopy

1Yr

@Buy_and_Hold_Guni is my largest position with 40%. ~5000€.

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Deleted User

1Yr

Comment was deleted

Snopy@Snopy

1Yr

@Buy_and_Hold_Guni what exactly do you mean by smooth out? Sell and reallocate?

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Deleted User

1Yr

Comment was deleted

Snopy@Snopy

1Yr

@Buy_and_Hold_Guni was honestly my plan as well. Only the taxes scare me a bit. Have a profit on the ETF and want to give up the eig reluctantly 🙈

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Deleted User

1Yr

Comment was deleted

Snopy@Snopy

1Yr

@Buy_and_Hold_Guni not in Austria. You pay from the first cent.

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