Best ETFs for shorting: IB Stock yield enhancement

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sean.mcgrath
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Best ETFs for shorting: IB Stock yield enhancement

Post by sean.mcgrath » Mon Jan 13, 2020 12:32 pm

Hi all,

A question on how to optimize my portfolio for IB's stock lending program.

I swallowed my doubts and enrolled in the IBKR "stock yield enhancement program" in December. Basically, they lend out your stocks to shorts and split the interest income with you.

It is interesting to see which of my ETFs are lent out, and at what yield. E.g., IXUS (total non-US) was lent out at 0.12% interest, of which I received half. FNDF (Large cap, fundamental international) was lent at 5.89%!

Obviously supply and demand is at work, and IXUS is a much larger fund. However, there are lots of similar funds, and it raises the question: is there (for example) a particular large cap, fundamental international fund which is sort of the "go-to" fund if you would like this kind of a short? Alternatively, do shorters scan the top ten funds in a class, and just go for whatever's available?

I really don't care whether my ETF is from iShares, Vanguard or Schwab as long as they are functionally equivalent. Does anyone know how one would find out which funds are the standards used for shorts?

cheers,
Sean

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whodidntante
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Re: Best ETFs for shorting: IB Stock yield enhancement

Post by whodidntante » Mon Jan 13, 2020 12:37 pm

I believe IB has a page where you can check the borrow rates.

Topic Author
sean.mcgrath
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Joined: Thu Dec 29, 2016 6:15 am
Location: US in NL

Re: Best ETFs for shorting: IB Stock yield enhancement

Post by sean.mcgrath » Mon Jan 13, 2020 1:15 pm

whodidntante wrote:
Mon Jan 13, 2020 12:37 pm
I believe IB has a page where you can check the borrow rates.

Thanks, I'll have a look -- although the rates vary daily. Will see whether it gives a hint as to which are most popular.

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