Exchange-traded funds, better known as ETFs, have seen a surge in popularity recently, but Jim Cramer is not as taken with the trend as the rest of the market.
Proponents argue that ETFs guard against "single-stock risk," or the damage an individual stock could do to your portfolio. They say it lets you play an entire sector rather than putting all your money on one potentially bad stock.
But Cramer doesn't buy that argument. "You want to be in a stock because it's the best name in a sector that's growing. You don't want to be in a group of mediocre stocks that will pull down the high-quality stock you've chosen," the "Mad Money" host said.
Watch the full segment here: