Single-Stock ETFs Surge in 2025 with 276 New US Products; Experts Warn of Risks

The CNBC report [1] highlights explosive growth in US single-stock ETFs, with Morningstar data showing 276 new products launched in 2025 as of Dec. 9, totaling ~377. ETF providers are aggressively entering this space to meet investor demand for targeted stock exposure. However, experts emphasize that the return-amplifying features (e.g., leverage) of single-stock ETFs are paired with disproportionate risk.

1. Product specialization trend
   : The 2025 surge reflects ETF providers’ focus on niche, targeted investment products to differentiate offerings [1].
2. Asymmetric risk-reward
   : Single-stock ETFs’ amplification mechanisms create disproportionate gains/losses relative to traditional diversified ETFs [1].
3. Investor confusion risk
   : Crowded provider entry may reduce product differentiation, increasing confusion about varying risk structures [1].

• Amplified volatility
  : Leveraged structures can lead to substantial losses if underlying stocks decline [1].
• Concentrated risk
  : Single-stock exposure increases vulnerability to company-specific events [1].
• Market instability
  : High trading volumes could exacerbate volatility for popular underlying stocks [1].

• Targeted exposure
  : Sophisticated investors gain cost-effective single-stock access without direct trading [1].
• Amplified returns
  : Favorable market conditions may generate higher returns than direct stock investments [1].

As of Dec. 9, 2025, 377 single-stock ETFs exist in the US (276 launched in 2025). ETF providers are rapidly expanding offerings, but experts warn of significant risks from amplification features. Investors should thoroughly evaluate risk-reward profiles, understand product structures, and assess risk tolerance before investing [1].