BlackRock looks to ETFs for shorts
08 August 2010 New York
Image: Shutterstock
BlackRock has applied for regulatory approval for the right to sell short when running exchange traded funds that track market indices.
The company wants to be allowed to create ETFs that can bet against stocks or bonds. The company's current ETFs are based on indices that buy stocks rather than selling them short.
It is believed that these new products will allow firms to expand into areas currently dominated by money managers using active strategies.
According to the application, BlackRock will offer ETFs based on indices that invest in long and short positions. The firm may later create funds that are based on indices that exclusively hold short positions. BlackRock also said that the new ETFs "anticipate using securities lending to a greater extent", than existing funds to enhance their investment strategies.
The company wants to be allowed to create ETFs that can bet against stocks or bonds. The company's current ETFs are based on indices that buy stocks rather than selling them short.
It is believed that these new products will allow firms to expand into areas currently dominated by money managers using active strategies.
According to the application, BlackRock will offer ETFs based on indices that invest in long and short positions. The firm may later create funds that are based on indices that exclusively hold short positions. BlackRock also said that the new ETFs "anticipate using securities lending to a greater extent", than existing funds to enhance their investment strategies.
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