Index Etf

Discussion in 'ETFs' started by maxitronixy, Feb 10, 2010.

  1. Im looking into index etfs. My only concern is the company managing the etf, if it goes bust, then what happens? im looking at I shares, an index ETF, and state streets global advisors company.
  2. MTE


    If it's a true ETF rather than an ETN (exchange-traded note, essentially a debt instrument) then the assets of the investors is segregated from the actual management company and so if the management company goes bust then investors' assets are safe.
  3. MTE


    Just look in the prospectus. If it says ETF then you are ok, if it actually says ETN then you need to look deeper.
  4. joe4422


    Also, verify how closely the ETF will actually follow the index it tracks. Bear ETFs can great fail at tracking, as can triple or even double ETFs.