ETFs & Mutual Funds

One-Day-Only ETFs Are Jack Bogle’s Nightmare Brought to Life

  • Critics argue single-stock funds are designed for day trading
  • Risky ETFs highlight the $10 trillion industry’s culture shift

Jack Bogle

Photographer: Scott Eells/Bloomberg

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The late Jack Bogle — father of the first index fund — famously loathed their exchange-traded offspring, warning that it only incentivizes speculative trading among “fruitcakes, nut cases and lunatic fringe.” Fast forward to 2024, and critics warn a new generation of ETFs are designed to do exactly that.

Enter the high-octane arena of leveraged single-stock funds, which use derivatives to amplify returns on an individual company.