ETFs are investment funds traded on stock exchanges, just like individual company stocks. They offer investors an easy way to buy a diversified portfolio of assets—such as stocks, sukuk (Islamic bonds), or commodities—in a single security.&nbsp;  
ETFs provide liquidity, diversification, and transparency, and usually have lower fees compared to traditional mutual funds.

Many ETFs follow a passive investment strategy: instead of trying to beat the market, they aim to match the performance of a specific index, like the S&P 500 or Nasdaq.&nbsp;  
  
This makes them a great option for investors who want broad exposure to different asset classes while aligning with the index performance.