The Straits Times article "1 in 3 fund managers wary of synthetic ETFs: Survey" dated 23 June 2011 revealed that 1/3 of the fund managers are wary of synthetic ETFs. Synthetic ETFs whose underlying are derivatives always make me feel very uneasy. Sometimes I would have nightmare over it. I advice people to stay away from swap-based ETFs altogether. I've never recommended swap-based ETFs to my clients. Unfortunately, most ETFs on SGX are like this. There is no need to buy ETFs from SGX. Just open a local online broker and you can buy normal ETFs from overseas......