noob investing question: Can BlackRock iShares ETFs go bankrupt? What happens to my shares in that case?
Look up etf share creation and redemption. What you are describing is not possible.
ETF is just a basket of securities. There is no concept of bankruptcy because it's not a company. It can go to zero if every security in the ETF goes to zero.
Depends whether it is a leveraged fund and how quickly it liquidates.
Yes. Those shady ones would surface only when there's a crash. In a bull market, fudged accounts have a high probability of going unnoticed. That's why crashes are necessary.
No the underlying assets are held in trust. Some of the more complex ETFs that rely on writing options might.
Yes, a trust that you cannot see. How would we know if GLD has the physical gold and hasn't double-booked like airline seats? Diversify to be safe.
Not unless BlackRock has committed fraud. They are required to disclosed and own the underlying stocks, which are held in trust. In theory if BlackRock goes bankrupt, they would liquidate the underlying assets, to which creditors have no claim, and deposit the fund in your account.
We won't discover that until it hits the fan... Sub-prime loans had a reset-timers that exposed the fraud quickly.
I had an ETN from lehman brothers. Lost it when it went bust. Did not know ETN s are dealt differently from etf
Oh ETNs are a completely different thing altogether.
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They’d halt trading, sec would step in and liquidate and return cash to shareholders?