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An ETF, or exchange-traded fund, is an investment fund that trades just like a stock on a stock exchange, but it is typically based on an index or a sector. In general, an ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Since we typically focus on the commodities sector, by using ETFs, we get to trade a basket of stocks by buying only one instrument.

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