Investors Who Shorted Russia ETFs Are Now Stuck Paying Never-Ending Fees
- Shorts have paid $2.6 million in borrow fees since ETFs halted
- Borrow rates rose as Russia-Ukraine tensions intensified
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Investors who bet against ETFs tracking Russian assets in the build up to the Ukraine invasion made the right call -- and they’ve been paying the price ever since.
Stocks linked to Russia plunged following the outbreak of war and subsequent economic punishment meted out to the country, vindicating bearish wagers. But sanctions also made trading Russian securities almost impossible, leaving short sellers unable to exit their positions.