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Did Lehman run index funds? What happened to their customers? What would happen today if a firm like Schwab or Fidelity suddenly went bankrupt? Would their S&P
by WorkUntilRetire 8y ago
Did Lehman run index funds? What happened to their customers?
What would happen today if a firm like Schwab or Fidelity suddenly went bankrupt? Would their S&P 500 index funds (Such as SWPPX or FFFFX) drop to zero, wiping out customer’s retirement?
- craftyguy 8y ago> Would their S&P 500 index funds (Such as SWPPX or FFFFX) drop to zero, wiping out customer’s retirement? I'm no expert, but I wouldn't think so if those funds track the indexes, since the index 'values' are the collective values of the stocks they represent. On the other hand, SWPPX, etc would no longer be maintained. That's a really good question though, I hope someone with more knowledge comments!
- akashshah87 8y agoNot an exact answer to your question, but see this post on the Bogleheads wiki regarding Vanguard - https://www.bogleheads.org/wiki/Vanguard_safety https://www.bogleheads.org/wiki/Vanguard_safety