Investing

New Single-Stock ETFs Are ‘Recipe For Disaster,’ Experts Say

Recently launched investment products give retail investors the chance to amp up their bets — and potentially lose even more. 

Source: Getty Images

Lock
This article is for subscribers only.

Retail traders just got a new tool to make bigger bets on their favorite stocks, but advisers are warning about outsized risks.

The first single-stock exchange-traded funds earlier this month, providing an easy way to magnify returns or bet against volatile companies like Tesla Inc. and Nvidia Corp. Unlike typical ETFs, which include dozens of stocks or bonds, these new products concentrate on just one security.