So I've been lurking for a while, and noticed that "invest in index funds" is sort of the standard answer to many questions.
However, and excuse me if this is a slightly retarded question, isn't there a risk from the company where the index fund is bought from?
What I'm talking about is: what if Vanguard/iShares... has some internal problems that could cause them to go bankrupt or lose a ton of money from fraud, internal faults where funds are lost, over-use of synthetic shares...
In the end it seems almost riskier than buying individual stocks. It seems that there isn't just the risk in the underlying, but also the "holding company"...
Submitted July 07, 2017 at 06:30PM by MeritedChunk http://ift.tt/2szsC6v
