Why ETFs are better than stocks

ETFs can be "better" for many investors because they make diversification easy. With one purchase you can own hundreds or thousands of securities, which reduces single-company risk compared to picking a few stocks.

They're also flexible: ETFs trade intraday, and many have low expense ratios. In taxable accounts, many broad equity ETFs have historically been relatively tax-efficient, though taxes still apply to distributions and gains when you sell.

The important nuance is that ETFs vary widely. A broad index ETF is very different from a leveraged, inverse, or niche thematic ETF. So ETFs are great tools, but you still want to match the exposure to your plan.