So I understand the risks of ETFs in terms of the market going up or down, but are there any other risks related to the company issuing them? For example most banks have insurance (CDID in Canada and an equivalent in the U.S.) to cover savings accounts if the institution goes under. Obviously a long shot, but if Barclays (that owns iShares I believe), goes under, what happens to my ETF stock? Is it still safe if the underlying investments are still OK?

Rabbit answered:
Barclays manages unit trust funds. Each trust is a stand-alone, so a different management company can be easily selected by the bankruptcy judge.
Additionally, these are minimally traded accounts, so they don't have a bunch of churning like a traditional mutual fund. Essentially, they map out a set of stocks that fit an advertised criteria, buy a batch with a set budget (usually a $50k minimum) and it just sits there. When dividends come in, then they buy more, but that is also chalked up to the amount from which those basic administrative costs are paid and then make a disbursement of the difference at some preset calendar time. If the demand rises, then another batch of shares is bought and a new set of unit trust shares is sold at market. If a stock no longer fits the criteria, but another one does, then the position in the former is closed and that money buys a comparable position in the latter. That is just about it.

My interest in ETFs, particularly iShares, is that Barclays has been so very good, reliable, and frugal that they are almost a cheaper money manager than I am were I to do the exact same thing.

Of all the economic choices, you could so very easily do worse. If the ETFs tank, it is because those stocks they are holding plummet, not the trust, and probably not the trust administrator.

This question reminds me of when I was selling for Mutual Benefit, one of the very oldest insurance companies in the country. When they folded, not a penny was lost to people in the trust and annuity products (the whole life policy holders, unfortunately, got hosed). Trust and annuity money was simply managed and accounted differently. Check the underlying organizational structure of your ETF, if it is a trust and the funds are likewise minimally managed (buy and hold strategy), then you are okay.

MVD34 answered:
ETF's, yes.
ETN's, maybe not.
ETF's are pools of investment money separate from the company that manages the assets. Unless fraud is involved, you have not direct risk. If fraud, then the underlying fraud "insurance" -- details aren't really important here -- will kick in.

ETN's are pools of investment money that are in some important ways guaranteed by the company issuing the notes -- underwriters risk.
The strength of the company controlling your assets always matters, but risk in these products is not really any greater than in mutual funds and much less than hedge funds.