Exchange-traded funds (ETFs) are a type of investment fund that holds a basket of assets, such as stocks, bonds, or commodities, and trades on an exchange like a stock. ETFs, offer investors a convenient way to diversify their portfolios and gain exposure to various sectors and asset classes.

ETFs are designed to track a particular index or benchmark, and their prices fluctuate throughout the trading day based on supply and demand.

They typically have lower expense ratios compared to mutual funds and can be bought and sold through a brokerage account like individual stocks.