I guess this is one justification for equity mufu over single stocks, but MOETF is “comparable” to mufu.

For any stock to receive $500 of my money, it has to be rather solid, reputable, with a convincing trec. If such a stock pick still goes bankrupt, then I will accept the result and accept personal responsibility. The initial amount is risk capital anyway.

Any example? Nortel? RIM?

I think the probability for hitting a bankruptcy or delisting among my non-trivial stocks, within 10Y, is 10% [1]. My loss would be … 5% of my portfolio. But Expense Ratio of a mufu easily adds up to 20% of my asset value in one mufu.

[1] The probability estimate depends on my count of non-trivial stocks. Am assuming 100+