An ETF, or exchange-traded fund, is a type of investment vehicle that allows investors to trade and invest in a basket of assets simultaneously. The first ETF was launched in 1993, and they have become increasingly popular in recent years. Exchange-traded funds typically comprise stocks, bonds, and other securities and can be traded on major stock exchanges.

ETFs offer many advantages for investors, including the ability to diversify investment portfolios, access to various asset classes, and the ability to trade the funds like stocks. ETFs are a popular choice for many investors, and assorted types are available to trade on major stock exchanges.

Asset class ETFs provide exposure to certain market capitalizations of equities or fixed income sectors. They can be used as a tactical tool to gain exposure or hedge an existing position. ETFs can also track commodities, currencies, and alternative investments.

ETFs may be sectors like energy or financial, or index-based, like S&P 500 or Nasdaq 100. ETFs can also provide geographical exposure to emerging markets or countries, like China. Style ETFs include growth or value or ESG that give investors exposure to specific investment strategies.

ETFs tend to have lower expense ratios than actively managed mutual funds and can be traded throughout the day.