How are synthetic EIFs different from other types of EIFs? Syothetic ETFs are more transparent because thoy do not hoid the actual securites they are tracking Synthetic ETFs are constructed with derivatives, such as swaps and optons, to achieve the same retum as an index Symthetic ETFs do not have tracking erroe because they do not hold the actuat securities they are trackirg Symhetie ETFs can only contract with a Schedule 1 bank to perform the responsibaites of a deslgnated dealer