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Securities lending in ETF, what the?

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  • My concern is that things could be a bit messy in the event of a crash. Especially with 20% of the ETF's holdings loaned out. I am not an expert so may be wrong but I would prefer if there were no securities lending at all (even if that sacrificed tiny gains from the lending fees/income)
  • System
    System Posts: 178,349 Community Admin
    10,000 Posts Photogenic Name Dropper
    My concern is that things could be a bit messy in the event of a crash. Especially with 20% of the ETF's holdings loaned out. I am not an expert so may be wrong but I would prefer if there were no securities lending at all (even if that sacrificed tiny gains from the lending fees/income)
    Even though I think that you are making a mountain out of a molehill, and have a complete lack of judgement and perspective, you might be interested that Lyxor Core ETFs do not engage in securities lending:
    https://www.lyxoretf.co.uk/en/instit/products/range/reduce-cost
    Although SG might be thinking of selling its ETF business:
    https://www.ft.com/content/a769d1ac-ccc3-30ba-bf93-2354e4de9823
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • IanManc
    IanManc Posts: 2,450 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    Economic wrote: »
    Even though I think that you are making a mountain out of a molehill, and have a complete lack of judgement and perspective, you might be interested that Lyxor Core ETFs do not engage in securities lending:
    https://www.lyxoretf.co.uk/en/instit/products/range/reduce-cost
    Although SG might be thinking of selling its ETF business:
    https://www.ft.com/content/a769d1ac-ccc3-30ba-bf93-2354e4de9823

    Your personal attack on newbinvestor is inappropriate.

    People are perfectly entitled to ask questions, and express opinions with which you disagree, without being subjected to a personal attack from you. Your saying they "have a complete lack of judgement and perspective", thereby attacking them personally rather than disagreeing with what they are saying doesn't reinforce the point you are making one bit.

    In my opinion newbinvestor is asking reasonable questions about a topic that he/she wants to learn about. I think that this is exactly the sort of thing the forum is for.
  • I did see the Lyxor ones yesterday and do prefer them to iShares.

    How do I have a complete lack of judgement and perspective?
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