I read this section couple times Reading 42…about Creating Equity out of Cash what’s the difference between: Creating a Synthetic Index Funds vs Equitizing Cash…??
There is no difference if you are starting from a cash position. Equitizing cash is creating a stock position out of cash by purchasing futures on that stock, or stock index in the Index Fund listed. Now you might have a stock position and may want to lower your beta by selling futures in that position and buying futures in the Index Fund. Not sure if that would be a Synthetic position though.