Stocks vs. ETFs: Which Investment Strategy Works Best?
The stock market offers a world of investment opportunities, but choosing between individual stocks and ETFs (Exchange-Traded Funds) can be confusing. Both have unique advantages, depending on your financial goals and risk tolerance.
Investing in stocks means buying shares of a single company, offering the potential for high returns but also higher risk. ETFs, on the other hand, are baskets of multiple stocks that provide instant diversification and lower risk. If you prefer active investing, stocks may be appealing. But if you want a simple, hands-off investment strategy, ETFs are a great choice. Many investors combine both approaches to create a balanced and diversified portfolio.