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What is Exchange-Traded-Fund (ETF)

An exchange-traded fund (ETF) is a pooled investment asset that functions similarly to a mutual fund. ETFs often follow a specific index, sector, commodity, or other asset, but unlike mutual funds, ETFs may be bought and sold on a stock market in the same way that conventional stocks can. An ETF can be designed to follow anything from the price of a single commodity to a huge and varied group of commodities. ETFs can even be designed to follow certain investing strategies.

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