Salam,
I’ve noticed a lot of ETF funds which does Securities Lending. Quoted by one of the funds below:
‘Securities lending involves exposure to certain risks, including operational risk (i.e., the risk of losses
resulting from problems in the settlement and accounting process), “gap” risk (i.e., the risk of a mismatch between the return on cash collateral reinvestments and the fees the Fund has
agreed to pay a borrower), and credit, legal, counterparty and market risk. In the event a borrower does not return the Fund’s securities as agreed, the Fund may experience losses if the
proceeds received from liquidating the collateral do not at least equal the value of the loaned security at the time the collateral is liquidated plus the transaction costs incurred in
purchasing replacement securities’
Would it still be halal to invest in them? Jazakallah