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Hoots : Legal owner of funds and ETFs underlying assets and risks associated with it If you invest in a mutual fund, you aren't actually the owner of the assets, the fund is. Is this different in the case of ETFs? Is the investor - freshhoot.com

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Legal owner of funds and ETFs underlying assets and risks associated with it
If you invest in a mutual fund, you aren't actually the owner of the assets, the fund is.

Is this different in the case of ETFs? Is the investor the legal owner of the corresponding ETF's underlying assets? If so, can this investor exchange his participation in an ETF by the equivalent assets?

If the above afirmation about ETFs is correct, don't this create an additional risk for mutual fund investors?


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No, it's no different for ETFs. You own units of the ETF, not the stocks themselves. The fund itself (typically a trust) is the legal owner of the stocks (or bonds, or whatever is in the fund).


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