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Most index funds are synthetic. They would not be possible if it was not possible to beat the index quite reliably.


Care to explain? Genuinely interested.


With a synthetic ETF you are not actually buying the titles of the index. There is a swap with a bank that guarantees you the same earnings as the index. Why would a bank do that if they cannot outperform the index?

I'm just a layperson, so I might be wrong in some way that I don't understand




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