Securities Lending

In securities lending transactions, investors make short-term loans of stocks, bonds or ETF units to increase return in their portfolios.

Securities lending has evolved into a vital component of the financial markets and an important benefit for ETF shareholders.

One of the advantages of owning iShares ETFs is the potential for two sources of revenue from securities lending activities:

(i) Lending of underlying securities within the ETF and

(ii) Lending of the ETF units themselves

With securities lending there is the risk of loss should the borrower go out of business before the securities are returned, and due to market movements the value of collateral held has fallen and/or the value of the securities on loan has risen.

Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.

What is securities lending?

It is the short-term lending of stocks, bonds or ETF units with the objective of generating additional income.

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Lending underlying assets

Lending of the securities held by the ETF is conducted by BlackRock’s specialist Securities Lending team for the benefit of all shareholders in the fund.

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Lending ETF Units

An iShares ETF investor can potentially earn income by lending their ETF units through a lending agent, for their own benefit.


Important Information

Risk Warnings
Investment in the products mentioned in this document may not be suitable for all investors. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. You may not get back the amount originally invested. The value of investments involving exposure to foreign currencies can be affected by exchange rate movements. We remind you that the levels and bases of, and reliefs from, taxation can change. BlackRock has not considered the suitability of this investment against your individual needs and risk tolerance. The data displayed provides summary information. Investment should be made on the basis of the relevant Prospectus which is available from the manager.

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Restricted Investors
This document is not, and under no circumstances is to be construed as an advertisement or any other step in furtherance of a public offering of shares in the United States or Canada. This document is not aimed at persons who are resident in the United States, Canada or any province or territory thereof, where the companies/securities are not authorised or registered for distribution and where no prospectus has been filed with any securities commission or regulatory authority. The companies/securities may not be acquired or owned by, or acquired with the assets of, an ERISA Plan.

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