ETFs Outnumber Individual Stocks in U.S. Markets for the First Time
The U.S. financial landscape has reached a historic milestone: exchange-traded funds (ETFs) now outnumber individual stocks. Morningstar data reveals over 4,300 ETFs traded domestically, surpassing the approximately 4,200 listed securities. Flagship products like SPDR Gold Trust (GLD), Invesco QQQ Trust (QQQ), and SPDR S&P 500 ETF Trust (SPY) continue dominating flows.
This proliferation stems from democratized investing initiatives shifting power from institutions to retail participants. Financial advisors aggressively develop niche products tracking everything from artificial intelligence to crude oil. Yet market observers debate whether ETF saturation looms—even as providers tout low-cost diversification and sector-specific exposure.