Exchange-traded funds, or ETFs, are a kind of securities that frequently track an underlying asset. These securities include bonds, shares, money market instruments, etc. ETFs are, to put it simply, a combination of many investment strategies. They combine the greatest features of mutual funds and stocks, two well-known financial assets. When it comes to form, rules, and management, ETF funds resemble mutual funds slightly. They are a pooled investment vehicle that offers diversified investing into many asset classes like equities, commodities, bonds, currencies, options, or a combination of these, just like mutual funds. Additionally, they are even tradable on stock exchanges like stocks.