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ETFs is a mixture of investments. An ETF (Exchange-Traded Fund) lets you buy hundreds of stocks, bonds, or commodities in one purchase.
Imagine it as a music mixtape with all your favorite songs. In this case, it's your favourite investment or picture it has a buffet where you get a little bit of everything (stocks, gold, real estate).
For instance SPDR S&P 500 ETF (SPY) includes all 500 big U.S. companies (Apple, Amazon, Microsoft).
One way to manage risk is by holding a portfolio of investments. However, it is usually expensive for an individual to buy those securities at once. ETFs is professionally managed; it is designed to track the performance of equities or bonds by holding a portfolio that is representative of the constituent securities of the tracked index, e.g. S&P 500. By investing in ETFs, an individual investor is able to own part of a portfolio of investments, thereby diversifying his risk.
ETF are just like a basket holding lots of things ranging from stocks, bonds or gold. When you purchase one ETF, you have succeeded in investing on many things all at once. It is an easy way of investing in so many things in a simple place.