What are Single-Stock ETFs and Should I Invest in Them? Single-stock ETFs are different than traditional ETFs. Traditional ETFs offer a single security that tracks a collection of stocks, but the collection of stocks can be bought and sold like a single security. The collection of stocks underlying a traditional ETF supports diversification and thereby mitigates the risks associated with any one stock in the collection. Single-stock ETFs are based on just one stock, and they do not provide the benefit of diversification available from traditional ETFs. ETFs can be geared or not geared. A geared ETF aims to return a price change that is 1.5, 2, 3 or some other multiple value on the ETF’s price change during a day. Therefore, if an ETF’s price change is +2 percent and the gear ratio is 2, the geared ETF’s price rises by 4 percent on that trading day. In contrast, if an ETF’s price change is -2 percent on a trading day and the gear rat...
