January 21, 2009
– Comments (3) |
RELATED TICKERS: EWS
Can someone tell me soon and accurately what happens to EWS, EWA, EWH, etc. if BCS goes to 0?
That is the $1,000,000,000,000 question!
I don't have a clear answer for you, but suggest that investors with meaningful stakes start locating those prospectuses. If anyone in the community ends up running the prospectus past an attorney for guidance on the issue, please let us know.
For me personally, that was one of several factors in my decision to get out of the silver and gold iShares last year.
I'm sorry I don't have a more specific response for you... I think the question is a great one, and encourage you to find a way to answer the question for us all. :)
These funds (ETFs) are backed by actual holdings. See this article for more. Barclays markets these as iShares.
The article rightly points out that another traded security, exchange-traded notes (ETNs), is unsafe and subject to default risk. Barclays markets these as iPath. Lehman Brothers ETNs were not redeemed after the firm went bankrupt.
Thank you, pokey. That was immensely helpful.