An ETF may comprise thousands of stocks but from a management perspective it’s still a single holding. You invest in an ETF understanding the basis on which it operates and deciding that that approach is for you. In other words, I’m entirely accepting the math for 40% of my investments, and choosing to let that do what I want it to do, believing that I can do better than average with the other 60%. Some might say that the other 60% is more holdings than they’d go for, but I think a good way to balance more risky investments is to have a few more of them, as long as it’s not so many that you can’t keep track of and understand the underlying factors at play for.
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