Single-stock ETFs have gained immense popularity this year amid the stock market surge and the big tech wave. Unlike traditional ETFs, which typically track a broad index or sector, single-stock ETFs provide exposure to the performance of one specific company by using derivatives. This allows investors to gain exposure to a particular stock without having to buy the stock directly.
Single-stock ETFs tap the gambling mindset that exists in markets. There are currently four dozen single-stock ETFs on the market with a combined $3.3 billion in assets, according to Morningstar data. Five firms, AXS, Direxion, YieldMax, GraniteShares and Innovator, provide all the single-stock ETFs currently available on the market.
We have highlighted five single-stock ETFs that have outperformed the market in 2023. The solid trend is likely to continue in the New Year as…
