Can ETFs be sold short?
Yes. All ETFs may be sold short, representing the sale of “borrowed” shares in anticipation of lower prices when the borrowed shares must be replaced. Certain ETF products are also exempt from the rule that requires shares to be sold short only on an “up tick” (i.e., a last sale price higher than that of a securitys preceding last sale. Investors are required to make arrangements to borrow securities before selling short.
