Single-stock ETFs: Approach with caution - MoneySense

Single-stock ETFs: Approach with caution - MoneySense

When exchange-traded funds (ETFs) started taking off in Canada more than a decade ago, much of their appeal lay in the way they provided instant, low-cost diversification. For the cost of a stock trade, you got exposure to hundreds or even thousands of stock and/or bond issues.  But a new generation of ETFs proudly offers nothing of the sort. Like Canadian Depositary Receipts (CDRs), single-stock ETFs hold or at least derive their performance fr…