ETFs, or Exchange-Traded Funds, are investment funds that are traded on stock exchanges, much like individual stocks. They are designed to provide investors with diversified exposure to a portfolio of assets, such as stocks, bonds, commodities, or a combination thereof. ETFs are similar to mutual funds in that they pool together money from multiple investors to invest in a diversified portfolio of securities. However, unlike mutual funds, ETFs trade throughout the trading day at market prices, and investors can buy or sell them at any time when the market is open. ETFs are known for their liquidity, transparency, and typically lower expense ratios compared to many mutual funds. They have become popular investment vehicles for both individual and institutional investors seeking diversification and flexibility in their portfolios.