InvestorQ : It is possible that the ETF price goes to zero?
Shreya Mashelkar made post

It is possible that the ETF price goes to zero?

riya Ranade answered.
1 year ago

Theoretically, an ETF’s value can crash to zero. However, the probability of this happening is near impossible or at least as probable as an unlikely event can occur. For an ETF to completely lose its value, all the companies it tracks must be demolished in value.

All the companies simultaneously will have to go bankrupt, with their market cap turning nil. If such a scenario occurs, it is nearly doomsday and you will likely have a lot of other things to worry about. This is a very unlikely event, though, on paper, this could occur. There could be a risk that the AMC holding the ETFs could very well go bankrupt, which could lead to them delisting the ETF. That seems to be a more probable scenario than ETF price going to zero.