ETF (Exchange-Traded Fund) is a type of fund that is traded on the stock exchange. An ETF is an investment vehicle that typically tracks an index, commodity, or other assets in an asset group and provides investors with low-cost ownership of those assets. ETFs can be bought and sold on the stock exchange like stocks.

Investors can own a broad portfolio of assets by investing in ETFs and increase their liquidity by trading on the stock market. ETFs are a popular investment tool due to their advantages such as portfolio diversification, low transaction costs and instant trading on the stock market.