Safety of ETF's

Discussion in 'ETFs' started by Kicking, Oct 8, 2008.

  1. Anyone has solid info on the safety of some of these products such as Barclays iShares ? In one prospectus I understand in case of liquidation of the fund company, all funds can be affected .
  2. Daal


    Imagine if we got a run on ETFs :eek:
  3. I really wonder about Barclays and other European outfits such as SG. I am sure governments would step in in case of problems there. But the other day I was listening to Brinker and he reminded listeners that there is no fund protection with mutual funds, I never really worried about this and mistakenly assumed SIPC would play a role but SIPC protects against the brokerage failure, not the failure of a fund company.

    I also wonder about the short Proshares , they use swaps to short, but what about the counterparty risk there ? There are already someproblems with the short sale ban as I understand as they stopped issuing new shares for their short financial fund. Just wondering about the risk of having such fund mechanism blow up on you , not that yopu would lose all your money but your actual return would be very different than expected.
  4. Adobian


    I am looking for a 5x bagger. Anyone know a good ETF for this? I don't mind holding 6 months.
  5. Hmmm, been thinking about the same thing along the lines of SSO
  6. jd7419


    Buy the uyg if it gets to 6 dollars and martingale it all the way down. At some point you will get a 5 bagger.
  7. I've actually been thinking the same thing. There were a couple I was interested in for long-term, but then rethought it until we're clear on which firms will survive this mess.