- As of Aug 31, 2026, 58 income ETFs get their exposure through swaps rather than options on listed shares, out of 353 read.
In plain words
A swap is a contract with a bank: the fund pays one return and receives another, such as a stock’s. It lets a fund copy a result without owning the stock outright, to build a synthetic covered call or reach a multiple of a daily move.
ETFIQ reads each N-PORT and counts 58 income ETFs where swaps are the main source of exposure. A swap adds a second risk: the bank on the other side. The fund usually holds collateral to cover it, and the swap shows as a line in its holdings with its size.
Questions
- Is a swap-based ETF risky?
It adds the risk that the bank cannot pay. Funds keep collateral to cover that. The N-PORT shows the size of the swap.
- Why use a swap?
It can copy a result at lower cost or reach assets that are hard to own directly.
- How can I see a fund’s swaps?
On its holdings page, from the latest filing.