From Nasdaq Media Company:

Single-stock ETFs have become popular this year, offering exposure to specific companies without direct stock purchases. There are currently four dozen single-stock ETFs on the market, with a total of $3.3 billion in assets. Five firms offer all available single-stock ETFs, reflecting the gambling mindset in the markets.

Highlighting five single-stock ETFs that outperformed the market in 2023, including GraniteShares 1.5x Long COIN Daily ETF, up 723.3%, GraniteShares 1.5x Long NVDA Daily ETF, up 432.4%, and GraniteShares 1.5x Long Meta Daily ETF, up 199.1%. Also discussed are Direxion Daily TSLA Bull 1.5X Shares ETF, up 146.6%, and Direxion Daily AMZN Bull 1.5X Shares ETF, up 121.7%.

The best-performing ETFs are leveraged plays on the “Magnificent Seven” stocks, expected to rise further in 2024, driven by the artificial intelligence (AI) boom and cloud computing growth. Goldman Sachs predicts these stocks will outshine the remaining 493 stocks in the S&P 500 in 2024. The AI and cloud computing sectors will continue to grow in 2024.

Despite the potential for gains, single-stock ETFs come with significant risks, including the possibility of substantial losses if the specific company underperforms, lack of diversification, exposure to market volatility, and management fees. These single-stock ETFs are more suited for experienced investors willing to accept these risks.



Read more: 5 Best-Performing Single-Stock ETFs of 2023