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Vanguard tracker fund and security
snowshine
Posts: 148 Forumite
Hello
I am a novice and please bear with my questions.
A tracker fund could either be "Full replication" or "Partial replication" .
Now a Tracker fund (either of the above weightings) perform the actual replication by either physical replication (own the asset) or synthetic replication.
My question is how does Vanguard Tracker Fund do the above for its tracker funds?
If if does follow synthetic replication what are the collaterals company Vanguard holds to the value of customers invested money?
I presume in synthetic replication, assets are not held but other forms of financial instruments to replicate the performance?
Thanking you for your explanation
A tracker fund could either be "Full replication" or "Partial replication" .
Now a Tracker fund (either of the above weightings) perform the actual replication by either physical replication (own the asset) or synthetic replication.
My question is how does Vanguard Tracker Fund do the above for its tracker funds?
If if does follow synthetic replication what are the collaterals company Vanguard holds to the value of customers invested money?
I presume in synthetic replication, assets are not held but other forms of financial instruments to replicate the performance?
Thanking you for your explanation
0
Comments
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You can read the prospectus, but IIRC all the major Vanguard UK/Eire domiciled index funds and ETFs are physical replication.1
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