Real or synthetic ETF?
A physical-replicating, i.e. real ETF buys the securities itself and holds them when replicating the index. A synthetic ETF, i.e. a swap-based ETF, does not buy the securities itself, but only gives the ETF customers the promise that the ETF will perform exactly like the corresponding index that the ETF tracks. No securities are purchased for this purpose, but the ETF purchases or secures these rights through complex countertrades. These countertrades are called SWAPs in technical jargon alike from regular swap in exness fx broker. Synthetic ETFs have a bad reputation, because in earlier times the hedging of ETFs was very risky and if a bank involved in one of the swaps goes bankrupt, the entire ETF could collapse. In the last few years, however, the swapping ETFs have been collecting more and more collateral here and it is unfortunately also the case that swapping ETFs now and then also like to lend out their securities for a fee and thus have a nice little additional business. If everything goes well, it's fine, but this lending business is also an additional risk. It is difficult to find out whether a physical ETF does not lend out its securities.
There is also a small, fine detail with some securities lombard loans: Some banks might refuse to lend to synthetic SWAP ETFs. This problem is not found with physical ETFs.
Distributing or accumulating ETF?
A distinction is made between distributing and accumulating ETFs. In the case of distributing ETFs, the profits (e.g. dividend income) are distributed to the investors at least once a year. With accumulating funds, the profits generated are not distributed to the investor, but are reinvested in the ETF itself. If you do not need or want annual distributions, it is usually recommended that you choose the accumulating ETF. Here you do not need to worry about what to do with the distributions or where to reinvest them, but simply buy more units of the already existing ETF. It is the simplest option.
From a tax point of view, it also makes sense to buy an accumulating ETF, because it has a tax deferral effect. However, this effect is rather small.
Which ETF should I choose?
If you are new to the subject, it is recommended that you choose an ETF that is well known and that you can follow quickly through newspapers, etc. It is easy to choose the ATX. It is easy to follow the ATX, DAX, Dow Jones, etc. and how they are composed. The transparency is definitely there and there are no unpleasant surprises. The next consideration should be that you come to the point in which region, in which asset class etc. you would like to invest. you would like to invest. This choice should be made independently of the broker.