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ETF

Trading Term

ETFs (Exchange-Traded Fund) are an investment vehicle which issues and trades shares representing an underlying basket of assets, typically the constituents of a major share-market index. ETFs allow small investors to diversify their risk over a broad spread of investments, tracking an index, while offering the flexibility of trading like a share. ETFs can be bought and sold throughout the trading day, which is a feature that mutual funds do not offer.

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