BlackRock Seeks Clearance for Index ETFs That Can Sell Short
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BlackRock Inc. is seeking regulatory clearance to create exchange-traded funds that can bet against stocks or bonds, as the $826 billion industry’s largest player seeks new products to boost revenue.
The company applied today with the U.S. Securities and Exchange Commission for the right to engage in short sales when running ETFs that track market indexes. Until now, the New York- based company’s ETFs have been based on indexes that buy stocks rather than selling them short, a strategy that generates profits when the underlying asset declines in value.