With all the talk about BearSterns troubles and default, I wonder how safe are our shares of SHY held by other brokers and any other ETF issued by Lehman Brothers ?
Any one here concerned ?
Not at all. SHY is invested in short term notes. Little risk in this one unless interest rate spike overnight. This is likely not to happen. You still need to stay diversified. Good ETF resource at the bottom of the investment portfolio page
These shares follow a Lehman index but are issued by Barclays. They are U.S. Treasury Notes owned by the fund (SHY). See:
Customer service: Call 1-800-iShares (1-800-474-2737) between 8:30 am and 6:30 pm ET Monday through Friday
Yes, I'm concerned about all the ETFs - what is the situation when the sponsor/broker goes belly up. My understanding is that the actual funds of an ETF like SHY should be invested in the Treasuries themselves - separate from the assets of the sponsor - and that SIPC would insure the proper payment of shareholders from the ETFs (ie. underlying Treasuries).
But does anyone KNOW the facts in case of a Lehman's default?
Thanks in advance!