ETFs: seeking cover in the rain

  What Twain fails to mention is that a banker generally wants replacement cover in the meantime, just in case unexpected torrential rain hits and the borrower is unable to return the umbrella. When ETF providers lend out the securities underlying their funds, they require collateral as a form of cover, to protect against the possibility of the borrower going under and therefore failing to return the stock. However, the amount of securities lent out, the type and level of collateral posted in place and the revenue put back into the ETF differs across funds and among issuers.  The p...