Minimizing counterparty risk
Posted: Tue Apr 20, 2021 12:35 pm
I am interested in minimizing counterparty risk for the stock portion of the pp. Using a fund or ETF.
VTI is commonly referenced on this forum.
The equivalent mutual fund at vanguard is vtsax.
It seems that holding a mutual fund at vanguard has lower counterparty risk then owning vti. Perhaps there is no difference?
Is there any difference in counterparty risk of owning vti within the vanguard brokerage account versus owning vti within a fidelity account?
For example, does vanguard keep the component shares of vti in their vault? so if the New York stock exchange went out of business, vanguard could distribute shares, or dividends, to the vti owners?
VTI is commonly referenced on this forum.
The equivalent mutual fund at vanguard is vtsax.
It seems that holding a mutual fund at vanguard has lower counterparty risk then owning vti. Perhaps there is no difference?
Is there any difference in counterparty risk of owning vti within the vanguard brokerage account versus owning vti within a fidelity account?
For example, does vanguard keep the component shares of vti in their vault? so if the New York stock exchange went out of business, vanguard could distribute shares, or dividends, to the vti owners?