Cramer Remix: Why to own individual retail stocks over the sector ETF

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'I'd rather own the best than a mix of the best, the mediocre, and the worst,' Jim Cramer says.

, Cramer advised viewers against doing so. An ETF, or exchange-traded fund, is a bucket of stocks that track a particular sector.

"I think that's a mistake, though, because 20% of this thing is Amazon. Home Depot and Walmart are both 10%, Costco's 5%," Cramer said. "You're getting a lot of exposure to good retailers, but then you also got the lower-quality names in there, too." Cramer said investors should find individual equities to get behind in the space. He also explained why he stays away from sector ETFs in general.Get his full thoughtsWall Street is busy betting whether Federal Reserve Chair Jerome Powell will cut interest rates later this month.

But Cramer is turning his attention to the looming earnings season as investors try to gauge the central bank's move. "I'm not saying the Fed doesn't matter," the host said, after the major averages all retreated between 0.43% and 0.78%. "I will be watching him like a hawk, or maybe a dovish hawk, when he speaks to Congress this week. However, I think far too many people are misreading the Fed here and, more important, they are misreading the moment."

 

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To enrich your broker.

Yes agree but now 50% of the market is ETFs, which is telling us all something to pay attention to.

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