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TheStreet's Action Alerts PLUS portfolio manager Jim Cramer has some advice for investors new to the world of exchange traded funds.

"I have never ever been strident on ETFs," Cramer said Wednesday in an exclusive conference call with members of Action Alerts PLUS, TheStreet's VIP club for investors. "If you want to own an S&P ETF, I'm thrilled with that."

According to Cramer, exchange-traded funds that track the broad S&P 500, which is up 17% over the past 12 months, are terrific.

Exchange-traded funds are typically sold at low costs and include a basket of different securities.

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But Cramer also pointed to the importance of individual stock picking. He said owning mutual funds, individual stocks and index funds aren't mutually exclusive. 

Cramer pointed to Action Alerts PLUS owned-stocks, including Facebook (FB) - Get Meta Platforms Inc. Class A Report and Apple (AAPL) - Get Apple Inc. Report , as examples of successful stock picking. Facebook shares are up 27% over the past 12 months, while Apple shares are up 19.3%.

"I think that that people who want to own stocks should know how to buy stocks and know how to evaluate stocks," Cramer said. "That's Action Alerts PLUS."

(Click here to learn more about AAP club membership, which offers access to Cramer's future monthly conference calls, exclusive alerts every time he makes a trade and lots of other custom material.)

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, which Cramer co-manages as a charitable trust, is long AAPL and FB.