You have various ETFs in your portfolio and are wondering why the allocation at getquin differs from your broker's allocation?

Then read on.

There are basically two primary types of ETF replication: physical replication and synthetic replication.

With physical replication, the aim is to replicate the composition of the ETF as directly as possible. For this reason, the components of the index are bought directly.

Within physical replication, a distinction is made between 3 variants.

a. Full replication:

All securities contained in the index are purchased in the same proportion as in the index itself. This is typical for ETFs based on broad indices.

b. Sampling replication:

Only representative portions of the index are selected for replication in order to reflect the return as accurately as possible.

c. Optimized sampling:

In optimized sampling, only parts of the underlying index are selected for replication in order to generate the closest possible return. In contrast to full replication, in which all components of the index are purchased, and sampling replication, in which a representative selection is made, the optimized sampling approach uses specific quantitative models and analyses to select those securities whose weighting in the portfolio best replicates the return of the index.

Synthetic replication does not attempt to replicate the index, but to replicate the return of the index using derivatives such as swaps.

You do NOT invest directly in the index, but try to generate an index-like return with the ETF.

getquin always shows you the real allocation of the ETFs in the analysis.

This means that for synthetically replicating ETFs, it is not simply the underlying ETF that is shown, but always the real allocation of the swaps and other shares purchased.

Therefore, the analysis may differ from an analysis with a physically replicating ETF, as you are not investing in the index, but in the index return.