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Summary

Exchange Traded Funds
Hybrid of a share and a pooled index fund.
Trades on a stock exchange like a single share throughout the day.
Provides instant diversification like a fund by tracking an index.
Performance of ETFs closely match the performance of the relevant underlying index.
Clearing and settlement of ETFs is just like any other share.
Dividends accumulate and are paid out at regular intervals.
Management fees are deducted directly from the dividend yield.
At present ETFs do not incur stamp duty.
ETFs can only be bought and sold through any stockbroker.
ETFs are simple low cost, diversified investments with no hidden charges.