Tesla Craze Powers Single-Stock ETPs Toward $1 Billion in Assets

Exchange-traded products that track single stocks have garnered almost $1 billion, a milestone that underscores the demand for such investment vehicles even as they face criticism for being potentially risky.

Of the 32 such products tracked by Bloomberg Intelligence, with a combined $978 million under management, funds betting on or against Elon Musk’s Tesla Inc. commanded around $667 million, or roughly 68% of the total.

The segment amounts to a sliver of the $7 trillion universe of exchange-traded products. But industry observers say that the growth in single-stock offerings since their July debut signals a solid appetite.

“If you are ...