Exchange Traded Funds (ETFs)
in September 2008, ETF Securities launched ETF Exchange, an ETF platform.
All ETF Exchange funds employ total return swaps in order to replicate index performance. Often referred to as ‘synthetic replication’, this method can be more effi cient and cost-effective than conventional approaches since the fund’s counterparties are responsible for delivering index returns.
The ETF platform is now available on 5 European exchanges including the London Stock Exchange, Deutsche Borse, Borsa Italiana, NYSE Euronext and the ISE.
ETF Exchange is working with Citi, Bank Of America Merrill Lynch, Barclays Capital and Rabobank International. They are participants on the platform, acting as Approved Participants and Swap Providers.
Read more about this topic: ETF Securities
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