Are ETFs better than stocks?

ETFs and stocks aren't direct substitutes, they're different tools. A single stock is concentrated exposure to one company. An ETF often holds many companies (or many bonds), which can reduce company-specific risk.

If your goal is broad exposure with less single-company risk, ETFs can be a cleaner fit. If your goal is to express a view on a specific business, a stock may fit better.

The trade-off is that diversification can also dilute upside from a single winner. Many investors mix both: ETFs as a core base, plus a small set of individual stocks if they want targeted ideas.