#ETFWatch An Exchange-Traded Fund (ETF) is a type of investment fund that trades on stock exchanges, much like individual stocks. ETFs are designed to track the performance of a specific index, sector, commodity, or asset class. They provide investors with diversification, liquidity, and lower fees compared to mutual funds.

ETFs can be passively managed, replicating an index like the S&P 500, or actively managed, where portfolio managers make investment decisions. Some popular types include stock ETFs, bond ETFs, commodity ETFs, and sector ETFs.

With the rise of cryptocurrency, Bitcoin ETFs have also gained attention, allowing investors to gain exposure to Bitcoin without directly holding it.