An ETF (Exchange-Traded Fund) is a particular type of investment fund that is traded on an exchange, just like a stock. That is, they are financial instruments that group together a set of assets, such as stocks, bonds or other types of securities, and are designed to replicate the behavior of a reference index, such as the S&P 500 or the Nasdaq.

ETFs have become very popular among Latino investors due to their unique characteristics. Firstly, they offer instant diversification, since by investing in an ETF, you are automatically investing in a set of underlying assets, which reduces the risk of concentrating the investment in a single asset.

Additionally, ETFs are easy to buy and sell on the market since they trade like stocks. This means they can be purchased during market hours and at a real-time price. This liquidity and ease of transaction makes them a flexible and convenient option for Latin American investors.

Another advantage of ETFs is their relatively low cost compared to other investment funds. ETFs generally have lower management fees, meaning investors can gain diversified exposure to a wide range of assets at a lower cost.

In addition, ETFs also offer the possibility of receiving dividends and the option to automatically reinvest them, allowing compound growth of the investment over time.