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.