Exchange Traded Funds hold a basket of assets, such as stocks, bonds or commodities, which together are traded as a group, much like individual stocks. ETFs are designed to track the performance of a particular index, such as the FTSE100 or the S&P 500, or a sector-specific index such as oil and gas companies, or commodities, bonds or currencies.

ETFs allow investors a way to diversify their portfolios, because they provide exposure to a broad range of assets without having to buy each asset individually.

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