AIM 05.1 Securities lending

ETFs often lend out the securities of the fund using repurchase agreements, and the lending income generated from these loans is used to subsidize the fund's operations. This section examines this practice.

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• Required reading

  • ​​Whaley 2024 Short selling (teaching note)

  • Reed 2013 Short selling AROFE​

  • SEC 1999 Short sales

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• ​Video

  • Short selling

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• Lecture notes​

  • Slides

    • Support files:

      • Short selling.xlsx

      • Securities lending rates 20210115.xlsx

      • Securities lending illustration (GME).xlsx