An exchange traded fund is a large collection of stocks, bonds, commodities, or assets that are bought and sold on a stock exchange.
– Market ETFs – Bond ETFs – Sector and industry ETFs – Commodity ETFs – Style ETFs – Foreign market ETFs – Inverse ETF
ETFs are a collection of commodities, stocks, bonds, etc. Shares of each are bundled together and weighted according to fund rules. Your investment is divided up based on this weight!
ETFs carry less risk than stocks. Because an ETF is a mixed collection of stocks and bonds. If one or two don't do well, and then the rest of the fund buffers the loss.
They are both low risk, have low brokerage fees and you can easily find options in both that allow you to invest at home and abroad.