Exchange-Traded Funds (ETFs) are investment funds that are traded on stock exchanges, and they typically aim to replicate the performance of a specific underlying index or asset class. The underlying assets of an ETF depend on the fund’s objective, which can vary widely. Here are some common types of underlying assets for ETFs:

• Equity ETFs: These ETFs track the performance of a specific stock index, such as the FTSE 100, S&P 500, Dow Jones Industrial Average, or a regional or sector-specific index. The underlying assets for equity ETFs are shares of individual companies included in the index.
• Sector or Industry ETFs: These ETFs target specific sectors or industries, such as technology, healthcare, energy, etc. The underlying assets consist of shares of companies operating within the chosen sector or industry.
• Bond ETFs: These ETFs track the performance of a bond index, such as government bonds, corporate bonds, or municipal bonds. The underlying assets for bond ETFs are various bonds issued by governments or corporations.
• Commodity ETFs: These ETFs provide exposure to commodities like gold, silver, oil, agricultural products, etc. The underlying assets can include futures contracts, physical commodities, or derivatives.
• Currency ETFs: These ETFs track the performance of foreign currencies. The underlying assets for currency ETFs could be foreign currency deposits or currency futures contracts.
• Inverse ETFs: These ETFs aim to provide the opposite return of a particular index or asset. The underlying assets could include derivatives like options, futures, or swaps.
• Leveraged ETFs: These ETFs seek to amplify the returns of an index, often using leverage. The underlying assets may include derivatives and other financial instruments.
• Multi-Asset ETFs: Some ETFs invest in a mix of different asset classes, such as stocks, bonds, and commodities. The underlying assets for these ETFs can be a combination of the various asset types.

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It’s important to note that the specific underlying assets of an ETF are defined in its prospectus and can vary based on the fund’s strategy and objective. Investors should always review the prospectus and understand the composition of the ETF’s underlying assets before investing.