Single Stock ETFs Launch in the U.S. - Providing Opportunities and Risks

The launch of eight single stock ETFs in the U.S marks a new phase in the evolution of the U.S. ETF market and is likely the precursor of more products of this type. It opens opportunities for traders and investors with a strong directional view on a stock, particularly during periods of volatility or earnings announcements. However, these products could be risky for those investors who hold these products for long periods without understanding the mechanics of daily rebalancing.