The assets covered by SIPC include stocks, bonds, Treasury securities, and certificates of deposit — as issued by a broker, not a banker. SIPC insurance also covers mutual funds and money market mutual funds. SIPC protection only applies to institutions that are considered “financially troubled.” The insurance doesn’t protect the value of any security. Also, SIPC doesn’t bail out investors when the value of their stocks, bonds, and other investments fail.
View more information: https://marketrealist.com/p/fdic-vs-sipc/