… a question about the investment risks in ETFs…
let’s take an exemple: if I invest in a Vanguard ETF and that Vanguard goes bankrupt, what happens to my investment? as ETF is a financial product, do I loose all my investment ?
now, in a same situation of bankrupt, but having invested in stocks through IBKR for exemple; if IBKR goes bankrupt, my stocks keeps mine as I am a shareholder. I would loose my cash but not my stocks. sounds safer in my opinion, isn’t it?
do you know if the principle is the same with ETFs? if I own a part of it, do I also own a part of every stocks constituing the ETF as a shareholder? or my “contract” is only with Vanguard with the risk of loosing everything in case of bankrupt?