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How stock lending affects ETF pricing

PUBLISHED

2018-09-12

Content

Like active managers ETF providers may loan out the securities they hold for stock lending purposes. This process is not without risk and the fee they receive has an impact on the total expense ratio of the ETF.

In the attached video, Kris Walesby from ETF Securities explains this in more depth.

Key points in the video :

• The role stock lending is playing in how ETFs are being priced
  
• The potential risks inherent to the process
  
• Global trends in stock lending among ETF providers
  
• What happens to fees generated in this way
  

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