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Can ETFs be shorted?

Often yes, under margin rules and if shares can be borrowed.

February 17, 2026

Yes, many ETFs can be shorted, provided you're approved for margin and the ETF is available to borrow. From a mechanics standpoint, it's similar to shorting a stock. (finra.org)

Costs and risks can be material: borrow fees can change, you may owe payments related to distributions, and losses can grow if the ETF rises. Shorting also requires maintaining margin, which can force you out of a trade at the worst time.

Before shorting, check borrow availability and cost with your broker and consider whether you're using shorting for speculation or hedging. For hedging, options or other tools may fit better depending on your goal and time horizon.

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Can ETFs be shorted?