ETFs are a type of exchange-traded product that offers investors a way to pool their money in a fund that makes investments in stocks, bonds, or other assets and, in return, receive an interest in that investment pool.

Many Exchange-Traded Funds (ETFs) are designed to track a particular market index passively. These ETFs aim to achieve the same return as the index they track by investing in all or a representative sample of the stocks included in the index.

Many different types of ETFs invest in various securities, including but not limited to stocks, commodities, and bonds. ETFs may also invest across different market sectors and countries.

ETFs can be traded long or short, similar to stocks, but they differ in that they represent multiple holdings under one symbol, rather than just shares in a single company.

ETFs and mutual funds differ primarily in their structure, trading mechanism, and costs. ETFs are traded on stock exchanges throughout the trading day, like individual stocks, while mutual funds are bought and sold at the end-of-day net asset value (NAV) price. Additionally, ETFs tend to have lower expense ratios than mutual funds, making them a cost-effective option for investors.