Die Replikation erfolgt physisch

08:12 Nov 13, 2014 

term within the source text. The author just wanted to say that he is *not* buying futures, options, CFDs or whatever regarding the index.

Physical means that he buys the shares itself in order to replicate the index. In former times they were indeed delivered as certificates and sometimes deposited in jacket custody.

So the author wants to emphasize that he buys real items instead of just rights on the index.

It *may* be influenced by the epic discussion about gold funds - there are more rights on gold on the market than precious metal is available.

So the author convey the high-grade approach of his investment, I think.

22:22 Nov 12, 2014 

I understand replicating the index, but what does "physically" mean?

14:14 Nov 12, 2014 

replicated/reproduced.

14:04 Nov 12, 2014 

But the same as what?

12:04 Nov 12, 2014 

sentence due to the fact that I am not enthusiastic about the source. I would suggest something like the reproduction is made by actual investment.

This emphasizes that shares are bought with the same weighting/percentage. And therefore being able to track the performance exactly including the dividends paid.