Experts sound the alarm over popular ETF that can quickly 2X your money. And you’re likely doing something just as risky
Yahoo Finance·2026-01-17 12:30

Core Insights - Single-stock ETFs represent a new category of investment products that diverge from traditional ETFs, focusing on individual companies and often employing leverage to amplify returns and risks [1][2][3] Group 1: Overview of Single-Stock ETFs - Single-stock ETFs have emerged since 2022, with over 200 launched in 2025 alone, indicating rapid growth in this segment [3] - These ETFs typically track major companies like Tesla and Nvidia, providing investors with double the exposure to daily price movements of the underlying stock [4] Group 2: Investment Dynamics - The use of leverage in single-stock ETFs can lead to significant volatility, with some firms proposing products that offer up to five times the exposure [5] - The potential for higher gains attracts investors, especially when they anticipate short-term stock price increases [5] Group 3: Market Behavior - Single-stock ETFs see heightened trading activity during earnings season, as stock prices tend to be more volatile following earnings reports [6]