Dispelling the "ETF collapse" myth
Recently, there has been some internet buzz about the possibility of ETFs "collapsing" based on borrowing and short-selling activity.
This conjecture stems from a lack of understanding of the ETF "creation and redemption" mechanism as well as a misguided notion that multiple investors might be able to redeem the same shares.
For a full treatment of this subject, read the Vanguard article, Can an ETF collapse?.
