November 2024 – Saxo Bank, a leading global investment platform, is introducing a flexible new service that allows investors to earn passive income from their stocks and ETFs. Through its Stock Lending service, clients can now lend out their shares to market participants and generate additional revenue, all while maintaining ownership of the underlying securities.
Earn More with Stock Lending
Saxo’s Stock Lending service offers a simple and flexible way for investors to enhance their portfolio returns. By activating the service, clients can earn passive income by making their stocks available for lending without having to sell them. Once enabled, Saxo handles the lending process, including the identification of market demand and facilitating the transactions.
“This is a unique opportunity for investors to put their stocks to work for them,” said [Name], spokesperson for Saxo Bank. “Stock lending offers a simple and low-maintenance way to generate extra income, while retaining full ownership of the underlying securities. It’s a flexible solution, with the ability to opt in or out whenever suits the investor’s strategy.”
How It Works
When a client’s stock is in high demand, Saxo Bank lends it out to market participants, who pay a borrow fee on the shares. The revenue generated from lending is shared equally between Saxo and the client. For example, a stock like ACME Corp with a 24% annual borrow fee would provide the investor with a 12% return on their investment over the course of the year. Payments are made monthly and are visible in the client’s account via the Stock Lending dashboard.
While there are no guarantees regarding the amount of revenue or the frequency of lending, the service is designed to provide investors with a straightforward way to enhance their returns. The interest rate will vary depending on factors such as the demand for specific stocks and the overall market conditions.
Top-Earning Stocks for October 2024
In October 2024, some of the most in-demand stocks that earned significant lending fees included:
- Beyond Meat Inc. (USA) – 12.68%
- Amundi Global Agg SRI UCITS DR EUR H ETF (Switzerland) – 4.25%
- Avantium (Netherlands) – 20.18%
- FastNed (Netherlands) – 13.17%
- Biocartis Group NV (Germany) – 11.90%
Please note: the interest rates provided are annualized and reflect the rates paid to clients in October 2024. These rates are subject to change and should not be considered indicative of future returns.
Investor Control and Flexibility
Saxo’s Stock Lending service puts investors in control. They can activate or deactivate the service at any time and sell their stocks whenever they wish. Stocks and ETFs that are lent out will still appear in the investor’s portfolio, and they will continue to receive any applicable dividend payments during the lending period. However, clients do not retain voting rights or the ability to attend shareholder meetings for stocks that are lent out.
Key Benefits of Stock Lending
- Passive Income: Earn extra revenue from lending out stocks or ETFs.
- Full Ownership: Stocks remain in the investor’s portfolio, and they can be sold at any time.
- Flexible Participation: Activate or deactivate the service based on personal preference or market conditions.
Risks to Consider
While stock lending offers the potential for additional income, it is important for investors to understand the associated risks. The value of lent-out stocks may fluctuate, impacting the overall portfolio value. Additionally, while Saxo Bank takes care of the lending process, the client assumes the economic risks in the event of bankruptcy or insolvency by Saxo. The service is designed with safeguards in place, but clients should be aware of these considerations.
For more information about Saxo Bank’s Stock Lending service or to activate the feature, clients can visit the Saxo platform or consult the help portal.
About Saxo Bank
Saxo Bank is a leading online investment platform, providing a comprehensive range of trading and investment solutions for private investors and institutions. With a focus on technology-driven financial services, Saxo Bank offers clients access to a wide range of global markets and asset classes, including stocks, bonds, options, ETFs, and more.
