Can Single-Stock ETFs Help You Beat the Bear Market?
When you think of exchange-traded funds (ETFs), you're probably thinking of investments that contain dozens of stocks, or even hundreds. The advantage of investing in ETFs is that they can help you diversify.
But there are new ETFs that focus on just single stocks. Through these ETFs, investors can amplify their returns or even short a stock. Could this be a way to beat the current bear market?
If you invest in an ETF that contains hundreds of stocks, your overall returns are going to be much more muted than if you hold just a single successful stock. It's the cost of too much diversification: Your gains aren't going to be as significant, but your losses also won't be as deep.
Source Fool.com
