Vanguard is to allow its largest European exchange-traded funds to begin lending out securities in order to generate more revenue for investors.
The US firm has added a provision to the product details of 12 of its European ETFs giving the funds the capacity to lend out securities in exchange for collateral.
Funds affected include the $14.3bn (£10.9bn) S&P 500 and the £2.2bn FTSE 100 ETFs. The company had previously stated that it would not engage in securities lending until funds had reached a sufficiently large size.
The full article is available at the FT.