Sometimes you will find that an ETF does not hold the same securities as the index it is tracking. This means that ETF is synthetic. Essentially, the ETF will aim to replicate the fund it is tracking.
You can view this previous post on our Community page, which will explain in more detail about synthetic ETFs.
It is important to note, that the Fund Manager can find the right mix of stock from anywhere to replicate the same performance.
A good example of this is the Lyxor MSCI Turkey ETF. This is a synthetic ETF and Lyxor uses non-Turkish companies to replicate the performance of the Turkish index. You will find companies like Apple and Tesla in this ETF (correct at the time of writing) when you might expect it to have only Turkish companies.
This example shows how a synthetic ETF can use any holding to replicate the index.
We have a KID at the bottom of every page when viewing the ETF, in these documents you can find out more about the ETF model.
(We are not an advisory service and must ask all clients to do their own due diligence on all their holdings).