Single Stock ETFs

The primary purpose of ETFs is to create easily traded baskets of underlying securities. So, why would single stock ETFs exist since investors could simply invest in the underlying security directly? The answer is that single stock ETFs are generally either levered or inverse funds. See article here, CNBC.

Index Funds Win Again

For the 12th straight year, index funds have outperformed a majority of actively managed funds. In fact, in 2021, 85% of US large-cap equity managers underperformed the S&P500. Interestingly, at the stock level, only 22% of the stocks in the S&P500 outperformed the index over the last 20 years, suggesting that a small number of stocks drive the majority of returns. See article here, Yahoo!.