Additionally, iShares now categorizes “physical” or passive Indexing ETFs as ETFs that can be “fully replicated or optimized/partially replicating” while Lyxor labels them as “physical ETFs with securities lending” and State Street keeps them simply as “ETFs”. [Index ETFs Gaining Traction in Europe]
Alain Dubois, the chairman of Lyxor, said that “physical ETFs” may be misleading since these ETFs lend out underlying securities.
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.