ETFs Outnumber US Stocks For First Time: Bullish Breakthrough or Market Bubble?
ETFs just flipped the script—now outnumbering individual US stocks for the first time ever. What does this tectonic shift mean for your portfolio?
The Diversification Delusion
More ETFs than stocks sounds like choice—but are we diversifying into oblivion? You can now buy ETFs that track everything from crypto to cloud computing, yet critics whisper we’re building castles on liquidity sand.
The Liquidity Illusion
ETFs promise easy exits, but when the tide turns, that liquidity can vanish faster than a meme stock’s gains. Remember—underneath every ETF is a basket of assets that can get just as messy as any single stock.
The Fee Factory
Wall Street’s not complaining—more ETFs mean more expense ratios clipping returns year after year. Because why pick one stock when you can pay for the privilege of owning them all?
This isn’t your grandfather’s market anymore. ETFs democratize access but concentrate power—and when everyone’s riding the same wave, someone’s gonna wipe out. Stay sharp, stay skeptical, and maybe keep a few actual stocks in your back pocket.
For the first time in history, there are now more exchange-traded funds than individual stocks in the United States. According to data compiled by Morningstar, the country has over 4,300 ETFs, compared with around 4,200 stocks. Read More
