Question 1: Do you think investing in IVV (the iShares ETF that tracks the US S&P 500) is a good investment? And is there any chance that the fund will go bankrupt or an investor not being able to withdraw money out of it?
Answer (by Peter Switzer): IVV is a good investment product. If you think the biggest fund manager in the world (Blackrock, which owns iShares) can go broke, then avoid it. I think it’s a solid investment opportunity at a low cost. Some people buy IVV after the market has been smashed and it has proved to be a good strategy. There are no guarantees but it would have to be a very scary depression to KO Blackrock.
Question 2: What are your thoughts on the Magellan High Conviction Trust (MHH) stock that will start trading on October 11? Applicants eligible to participate in the priority offer will receive additional “loyalty units” of up to 7.5% of their initial application (which will be paid for in full by the Magellan Group).