Stocks vs. ETFs: Focusing or diversifying? Why not both
Financial freedom begins with knowledge. If you are building a robust portfolio, the key question is: is it better to evaluate the characteristics of an individual company stock or the stability of an ETF (exchange traded fund)?
At Bitso, we know that both options are powerful tools for the growth of your capital. But the difference between ETFs and stocks lies in the level of control and the fluctuation you are willing to assume. It’s about being the leader of your strategy and making informed decisions, not blind ones.
This guide will help you understand the fundamental differences between stocks and ETFs so you can build the best strategy from the Bitso app.
What is an ETF? What is a company stock?
Individual stocks
A company stock is a small portion of ownership in a single company. When accessing investment services in it, you are evaluating the specific future of that company. bitso allows you to access more than five thousand stocks of companies in the United States and some from Mexico.
- Expected movement: it is concentrated. if the company does not achieve its objectives, the impact on your investment is total. It requires more active monitoring and a high-conviction investment thesis.
ETFs (exchange traded funds)
An ETF is a basket of different elements that trades as a single option. You can, for example, access an exchange traded fund that tracks the 100 largest technology companies or an entire stock index.
- Expected movement: The fluctuation is distributed, which makes its volatility lower than that of an individual company stock. They are an ideal anchor for the stable base of your portfolio.
Volatility and diversification: The main difference between ETFs and stocks
Here is the main difference between stocks and ETFs: The diversification factor.
| Aspecto | Acciones individuales | ETFs |
| Diversification | Low (Focus on a single company) | High (Automatically distributed investment) |
| Volatility | Greater individual fluctuation | Lower fluctuation (Ideal for long-term) |
| Monitoreo | More intensive (Requires constant research) | More passive (Follows index performance) |
If you are an investor who prioritizes stability, or if you are just beginning to build your portfolio, ETFs are an accessible entry point that allows you to diversify with less effort.
What is the best option for me?
Strengthen your strategy: combine and conquer
you don’t have to choose one over the other; you can and should combine them to achieve balance in your portfolio.
- Consider stocks if… You seek to focus your investment on a high-conviction idea and are willing to accept greater individual fluctuation.
- Consider ETFs if… You want a solid, automatically diversified base, and reduce the concentrated movement of a single company, using your investment as a “stable anchor.”
The simplicity of accessing investment in both on Bitso
at Bitso, we give you the tools to manage your securities investments with clarity and efficiency.
- Everything in one place: You have access to thousands of stocks of companies in the United States and international ETFs.
- Accessibility in local currency: You can access investment services in stocks and ETFs starting from just $1 USD.
- Zero fees: When accessing investment services in stocks and ETFs on Bitso, your capital works harder for you.
Strengthen your investment strategy with Bitso
Financial freedom is not a fantasy; it is a reality built with intelligent and consistent decisions. At Bitso, we give you clear knowledge and the tools to make that strategy simple to execute.
access investment services with strategy. explore thousands of stocks of companies and international ETFs with zero fees. If you are in Mexico, be among the first to access ETFs and take control of your portfolio.
access advisory and investment services.
Open or download the Bitso app today to manage your future.
Services offered by the independent investment advisor The Badger Management House Independiente, registered under folio 30205-001-(16900)-22/07/2025. The CNBV exclusively supervises advisory and securities investment services. Consult more details at The Badger Management House
