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  • Mutual Funds and ETFs: Diversification Opportunities. Diversification across a portfolio of stocks, bonds, and other assets managed by qualified fund managers is provided by mutual funds, another well-liked investment choice. Also accessible are exchange-traded funds (ETFs), which offer an affordable means of gaining exposure to a diverse portfolio of assets like stocks, bonds, or commodities. ETFs provide investors with transparency and liquidity and trade on stock exchanges just like individual stocks.