I still don’t know the answer but I have checked a number of ETFs and they all trade as warrants as opposed to shares.
Being a warrant as opposed to a share does have some ramifications. I doubt BlackRock or Vanguard will go bust any time soon though!
Below is a snippet from the ASX booklet “ASX Understanding Trading and Investment Warrants “
Issuer risk – ASX is not a guarantor
While ASX provides the platform for warrants to be traded,
neither ASX nor its subsidiaries in any way guarantee the
performance of the warrant issuer or the warrants issued.
Each warrant is a contract between the warrant issuer and
you. You are therefore exposed to the risk that the issuer (or
its guarantor, where relevant) will not perform its obligations
under the warrant. You must make your own assessment
of the credit risk associated with dealing with the warrant
issuer.
Warrant issuers are not covered by margins or other forms of
security lodged with ASX, ASX Clear, or any other party. The
risks associated with issuing warrants are managed entirely
by the warrant issuer. Covered warrants allow the issuer
to reduce this risk by placing the underlying instrument
in a cover arrangement to meet its obligations under the
warrant.
To help you evaluate the ability of an issuer to meet its
obligations, the disclosure document contains information
on the financial situation of the issuer and guarantor (if
applicable). Some issuers are listed on ASX and therefore
provide this information to the market on a regular basis.
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