Exchange traded funds (ETFs) and exchange traded commodities (ETCs) combine the benefit of a fund and a stock in one investment.
They are a popular choice as they give you access to diverse investments through a single low-cost product.
As their names suggest, exchange traded products are traded on exchanges such as the London Stock Exchange. In general they track a benchmark market index like the S&P 500 or FTSE 100.
Investing in one is like buying a basket of stocks that rarely changes, where performance is tied to the overall index itself.
The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.
EQi does not provide investment advice. If you are in any doubt as to the risk or suitability of an investment or product you should seek advice from an independent financial adviser.
The extent and value of any ISA tax advantages or benefits will vary according to the individual's circumstances. The levels and bases of taxation may also change.