5 Top-Tier Single-Stock ETFs That Led 2023

The investment world witnessed the remarkable ascent of single-stock ETFs during 2023 as they carved out a niche by providing targeted exposure to individual company stocks using derivatives. Notably, single-stock ETFs have deviated from the conventional ETF framework, which focuses on broader market indices or sectors. These specialized ETFs tie into the direct performance of a sole company, offering a unique opportunity for investors to leverage a company's success without purchasing the stock outright.

It's worth noting that single-stock ETFs cater to the speculative appetites of investors, and their burgeoning presence now encompasses nearly four dozen offerings that collectively manage over $3.3 billion in assets. This market is predominantly operated by five entities: AXS, Direxion, YieldMax, GraniteShares, and Innovator. Amidst the proliferating competition, five single-stock ETFs have distinguished themselves with sterling performances in 2023, promising further gains as we transition into the new year.

Exceptional Performers of 2023

GraniteShares 1.5x Long COIN Daily ETF (CONL) emerged as a standout with an impressive 723.3% increase, primarily by targeting 1.5 times the daily percentage change in Coinbase Global Inc's (COIN) stock. The ETF boasts $42.3 million in assets and trades roughly 376,000 shares daily, albeit with a management fee of 0.99%. This performance is indicative of the burgeoning interest in cryptocurrency-related investments and suggests potential growth buoyed by Bitcoin's trajectory and regulatory advancements.

The GraniteShares 1.5x Long NVDA Daily ETF (NVDL) closely follows, boasting a rise of 432.4%. It seeks to amplify the daily changes in NVIDIA (NVDA)'s stock by 150% and has accrued $256.7 million in its asset base. Given the tech giant's prominence and average trading volume of 540,000 shares, the ETF's success underscores the strong investor confidence in technology's future prospects.

Meta Platforms has its champion in the form of GraniteShares 1.5x Long Meta Daily ETF (FBL), which captured a 199.1% uptick by tracking 1.5 times the performance of Meta (META) shares. With $14.2 million in assets and a daily trading volume of 16,000 shares, FBL's gains reflect the vibrant outlook for social media and digital platforms.

The electric vehicle giant Tesla didn't go unnoticed with the Direxion Daily TSLA Bull 1.5X Shares (TSLL) advancing by 146.6%. As the single-largest U.S.-listed single-stock ETF brandishing $1 billion in AUM, TSLL jumps 150% with Tesla's (TSLA) daily performance and suggests an investor rally behind greener transportation solutions.

Lastly, the Direxion Daily AMZN Bull 1.5X Shares ETF (AMZU) echoes a positive sentiment with a 121.7% increase. Mirroring 1.5 times Amazon (AMZN)'s share performance, AMZU's optimistic showing, alongside its $53.1 million asset pool and 218,000 average daily trading shares, hints at a bullish stance on e-commerce and cloud services.

The Road Ahead in 2024

The future is promising for these high-performing ETFs particularly with the AI boom and cloud computing advancements, which are expected to amplify the so-called ETFs, Trading, Performance