Ann: Becoming a substantial holder, page-82

  1. 1,258 Posts.
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    interesting stuff, but there is nothing there that states that they definitively cannot lend out stocks, nor that lending them out is not in the "interest" of the index investors (e.g. shorters can go ahead and short, but they could very well be unsuccessful, and the additional fees earned are beneficial to the ETF fund). Would keep digging into the PDS (I couldn't see much on a quick search). Could be that state street don't engage in such activities and/or might be more of a US market thing.

    Securities that are in high demand in the loan market command higher premiums. ETFs that hold these in-demand securities can earn a significant premium lending out portfolio holdings. Premiums tend to fluctuate as certain sectors, markets or countries fall in and out of favor with short-sellers.

    https://www.etf.com/sections/etf-basics/understanding-securities-lending


 
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