Securities Lending Programs. Why Do It?

Recently, I realized that I’m uncomfortable allowing my brokers to lend out my securities. What are the direct benefits to account holders other than receiving literal pennies on the dollar in income (that’s been my experience in lending well-known ETFs until recently)? In exchange for these pennies, many of us are: -Taking on additional counterparty risk, even if the securities loan is collateralized. -Helping facilitate short selling of the very companies we’ve chosen to invest in. -Potentiall

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