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An ETF, or exchange traded fund, is a type of investment vehicle that holds a basket of securities (such as stocks, bonds, or commodities) and trades on a stock exchange.

The price of an ETF unit will change throughout the trading day as the ETF units are bought and sold on the market.

ETFs offer investors the benefits of diversification, low costs, and flexibility, as they can be bought and sold like stocks and offer exposure to a variety of asset classes.

ETFs can track a specific index, such as the S&P 500, or follow a particular investment strategy, such as investing in renewable energy or technology companies. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities.

They can also be actively managed, meaning that the fund's portfolio is selected and maintained by a professional fund manager.