ETF Risk Research: securities lending criticised

Securities lending practices are unfair to investors, finds ETF Risk's first annual survey, while liquidity and the spread of an exchange-traded fund versus reported costs are the most important factors influencing investor buying decisions

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Exchange-traded fund (ETF) providers are taking too much revenue from lending out the securities owned by their investors, according to the ETF Risk Annual Survey.

When asked what percentage of revenue they considered appropriate for securities lending agents to retain from physically backed ETFs, the vast majority (43%) said less than 10%.

In July, the two top providers of ETFs in Europe confirmed they would not look to adjust the revenues they take from securities lending in the light of the

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