This study explores if exchange-traded funds (ETFs) affect the delisting probabilities of their constituent firms. We document that ETFs ownership positively affects the probability of firms’ delisting due to M&A and negatively affects the probability of firms’ delisting for involuntary or voluntary reasons. The results hold using several robustness tests and after addressing endogeneity concerns. Using mediation analysis, we find that the relationship is driven by the improved corporate governance, through voice, that is associated with ETFs ownership, which is consistent with managerial agency theory.