Read my damn fucking text again. Yes when the company is dead your share is dead too.. however a share is a true value that means you have the right to have it and nobody can take it away from you. A etf is a contract a piece of paper .. an everything like a piece of paper like a option is worthless I. The case of trouble…. When I buy a long option for Microsoft and Microsoft collapses I have a total loss of my position… it has become worthless…. When the market pops company’s and banks that emitted etf contracts may also become worthless…. A name share will never become worthless except the company that you have a share of will get bankrupted. One of the reason why big banks build their own etfs based on a portfolio of stocks and not the other way around. At the end of the day banks are always diversify the risk by delegating the risk to their asset products