Easy-to-understand: Designed to track the performance of a specific index or sector, making them straightforward for investors to grasp.

Diversification: By investing in an ETF, investors gain exposure to a broad range of assets within a particular market or sector. This diversification helps to spread risk, making it a more approachable option for many investors.

Liquidity: ETFs are traded on stock exchanges, just like individual stocks. This means investors can buy and sell ETFs during regular trading hours, using the same platform and methods they use for other stock investments.

Cost-Effective: ETFs typically have lower fees compared to actively managed funds, making them an attractive option for both new and experienced investors.

Transparency: ETFs provide clear information about the assets they hold. Investors can easily see the underlying securities, which helps them understand what they are investing in.