From Nasdaq

May 21, 2025 10:00 AM:

Single-stock ETFs have been surging, more than doubling in value over the past month amid the historic Wall Street comeback. These ETFs provide exposure to the performance of one specific company using derivatives, allowing investors to gain exposure without buying the stock directly. Around 100 single-stock ETFs exist, with five doubling in the past month.

The top-performing single-stock ETFs include Defiance Daily Target 2X Long HIMS ETF (HIMZ) up 344.5%, Leverage Shares 2X Long HOOD Daily ETF (HOOG) up 131.5%, GraniteShares 2X Long COIN Daily ETF (CONL) up 109.1%, GraniteShares 2X Long VRT Daily ETF (VRTL) up 100.6%, and Direxion Daily MU Bull 2X Shares (MUU) up 99.4%. These ETFs offer leveraged plays on tech stocks, driven by strong corporate earnings and market optimism.

While single-stock ETFs offer a focused way to invest, they come with significant risks due to lack of diversification and exposure to individual stock volatility. They are best suited for experienced investors willing to accept these risks. Downsides include high risk, lack of diversification, market volatility, and management fees. Investors should consider these factors before investing in single-stock ETFs.

Read more at Nasdaq: 5 Single-Stock ETFs That Doubled in a Month