No they don’t even do the buying in reality and they aren’t...

  1. mbc
    1,350 Posts.
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    No they don’t even do the buying in reality and they aren’t allowed to actually hold possession of the shares, they must be held by a custodian bank / broker.

    The ETF generally allows the broker to do lending of some amount of the shares in order to get lower brokerage fees - or perhaps sometimes maybe they get a cut of the borrow too.
    Last edited by mbc: 22/06/23
 
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