Synthetic replication

As the pioneer in swap ETFs, we believe that synthetic replication can provide better tracking, enhance portfolio efficiency and potentially improve returns from portfolio tax efficiency and yield enhancement compared to physical ETFs in certain exposures like S&P 500, MSCI World and MSCI China A¹.

These benefits have the potential to drive superior long-term investment performance.

Did you know that Amundi is the largest² swap UCITs ETF provider globally? Not only that, we are the pioneer swap ETF provider with 24 years of experience.

But what does this mean to our investors? Our market leadership provides you access to our robust platform dedicated to ETFs. We select the best swap counterparties to enable investors to benefit from our bargaining power and favourable pricing or tax conditions in replicating some indices.

How can swap ETFs help investors in portfolio construction? Apart from enhanced performance and reduced tracking error, swap ETFs can offer simplified access to certain exposures, or countries particularly where indices cannot be replicated effectively using physical replication.  

At Amundi, we leverage these swap ETF strengths to help professional investors build efficient portfolios.

Counterparty risk is often cited as a concern with swap ETFs, but it is important to recognise that such risks exist across both synthetic and physical ETF replications.

Being the #1 UCITs swap ETFs provider² gives us the edge to negotiate robust agreements with counterparties. We only work with counterparties with high credit rating, employ rigorous counterparty management protocols and safeguards assets with full collateral basket to defend investors’ interests. 
Have questions about counterparty risk in ETFs? Let’s start the conversation.