I invested in an index (nikkei) ETF just before wall street came crashing down but I thought I did not mind because I am in it for the long haul and since I have an index ETF, a slice of the whole (or 200 companies of) the market, it would take a mass economic wipeout to prevent my bouncing back. But then as Lehman went broke and Morgan was bailed out, it occured to me that the value of an ETF may only be as secure as the bank that sold it. What happens if the investment bank goes bust? Would that mean I would loose my capital? The fund may be diversified among 200 companies but the fund manager is only one company and a lot of investment banks seem to be in danger of going to the wall. If so, then I am thinking of selling my crippled ETF and getting a variety of blue chips or primary industry stocks instead. Does an index ETF have an achilles heel in the investment bank that manages it?