An ETF provides the returns of the index it tracks. However, it can do this by two means: by physically buying the underlying assets of the index, or by synthetically replicating the returns through swaps or derivatives contracts. These two types of ETF are known as physical or synthetic ETFs.

Regulators are now taking a serious look at this market and asking whether enough is being done to protect consumers.

David Fuller's view I recommend that subscribers watch the instructive video and read the text, and you will also find a number of informative comments below the article.