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ETF is the acronym for Exchange-Traded Fund: a fund which is traded on the stock exchange. This means investment funds and shares which can be freely bought or sold at any time on the exchange. ETFs differ from usual mutual funds in which investors place investments. A large part of stock exchanges are indexed since they focus on following a specific stock index. This is done in part so as to highlight that ETFs only copy indices’ movements and there is no human factor involved in the management of funds.

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