Before you do so, though, make sure you’re comparing apples to apples. BlackRock spokeswoman Caroline Hancock told Reuters that BlackRock runs its own securities lending program internally, bearing all the costs of operating the program. By contrast, Hancock claimed that other institutions outsource their programs to third parties, thereby masking costs as third-party payments rather than securities-lending proceeds retained by the institution itself.
Keep your eyes open
Unfortunately, regardless of the outcome of the lawsuit, this episode is only the latest example of how you have to keep a close eye on the financial services providers that you work with. With so many obscure avenues by which disreputable financial professionals can skim off the top of your hard-earned assets, you can’t assume that anyone is looking out for your best interests other than yourself — even if you’re paying them to do so.
The article Why This ETF Company Got Sued and What It Means for You originally appeared on Fool.com and is written by Dan Caplinger.
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