CFRA ETF Research Note

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

July 18, 2022

Access Research

“By completing this form you agree to the processing of your personal information submitted through this form in accordance with CFRA’s Privacy Notice located at and the receipt of communications about CFRA and CFRA’s services.”

Key Takeaways

  • On July 14, 2022, AXS Investments launched seven ETFs that provide leveraged and inverse exposure to single stocks such as Nvidia, PayPal, Nike, Pfizer, and Tesla. It marks a new phase in the evolution of the U.S. ETF market and is likely the precursor of more products of this type.

  • These ETFs provide opportunities for institutional and retail traders with a strong directional view on a stock to implement their investment thesis through a liquid,  exchange traded instrument.

  • However, these products could be risky for those investors who hold them for long periods without understanding the mechanics of daily rebalancing.

  • Although the ETFs were approved by the SEC, both Commissioner Crenshaw and Lori Schock, the SEC’s Director of Investor Education, released separate statements expressing concerns. Their concerns centered primarily around the daily rebalancing of leveraged and inverse products.

  • Investor education around these products will be critical as they are introduced into the market.

Complete the form to download the research. 


About CFRA Data & Analytics 

CFRA’s ETF data and analytics reflect a deep understanding of ETF structures and their underlying  methodologies. This specialized ETF data and intelligence is available to clients to screen, compare, and analyze the characteristics of individual ETFs, including fund flows, holdings and performance, while providing a robust framework to power CFRA’s leading ETF research and ratings.

CFRA’s ETF data and analytics offers:

Constituent Holdings Classifications Core Stats
  • U.S., Canada & European coverage, expanding to include other regions
  • Global coverage, updated daily
  • Daily returns and volumes
  • 7 years history (U.S.)
  • Survivorship bias free history
  • Data available from fund inception
  • Data updated daily
  • Proprietary ‘smart beta’ classifications framework