MIMIC:
Another alternative is to augment an ETF with a concentrated baskets of stocks that enhance the Alpha profile of an ETF’s performance and volatility with half the fees.

Pro
•Direct stock ownership and opportunity for tax loss harvesting (see FAQ)
•Reduce fees by 50% and often reduce volatility
•Active rebalancing keeps you inline with the current market conditions, not the market from a year ago

Con
•Concentrated positions can increase stock specific risk
•Requires active rebalancing

Enhance:
Another alternative is to augment an ETF with a concentrated baskets of stocks that enhance the Alpha profile of an ETF’s performance and volatility with half the fees.

Pro
•Direct stock ownership and opportunity for tax loss harvesting (see FAQ)
•Reduce fees by 50% and often reduce volatility
•Active rebalancing keeps you inline with the current market conditions, not the market from a year ago

Con
•Concentrated positions can increase stock specific risk
•Requires active rebalancing

Select:
ETFs are not necessarily designed for performance rather they provide exposure to sector or theme. This often results in a very large set of holdings with the hope of catching the winners even if it is a tiny % of the index.
If you want to similar exposure to an ETF but with performance as the key driver a concentrated baskets optimized for alpha over the ETF might be worth considering.

Pro
•Direct stock ownership and the ability to harvest tax losses (see FAQ)
•Ability to Trade around positions and build a customized portfolio
•Active rebalancing keeps your investment focused on Alpha producing stocks not broad exposures.

Con
•Concentrated positions can increase stock specific risk
•Requires active rebalancing
Performance may deviate from the underlying ETF