/biz/ - Business & Finance

>get rich
>live long enough to jump on the immortality train
>observe and participate in how humanity advances in the coming centuries conquering the universe
Pretty straightforward desu

Can someone explain to me what is means that ETF is "swap based?"

>The Lyxor S&P 500 UCITS ETF is a UCITS compliant exchange traded fund that aims to track as closely as possible the benchmark index S&P 500 Total Return by entering into a return swap contract. For this specific index, Lyxor provides through its swap based ETF the most efficient way of tracking the benchmark, with an expected lower tracking error, while the swap counterparty risk is targeted at 0% via a daily reset mechanism associated with a full property and control of all the assets held. Lyxor ETFs are efficient investment vehicles listed on exchange that offer transparent, liquid and low-cost exposure to the underlying benchmark index.

Is it worth buying such ETF or will I be better off in ETF that actually owns the underlying assets?