What are physical ETFs?
What are physical ETFs? Physical ETFs, also known as “physically replicated ETFs,” are exchange-traded funds that directly hold the securities or assets they are designed to track. In other words, these ETFs physically buy and hold the underlying assets in the index they are designed to replicate. Here’s how physical ETFs work: Direct Ownership of Underlying Assets: Physical ETFs purchase and hold the individual stocks, bonds, commodities, or other securities that make up the index they track. For example, if …