Group 1 - The core appeal of ETFs lies in their low-cost, diversified access for investors at nearly any income level, providing a cost-effective way to build diversified portfolios through both index-based and actively managed strategies [3][4] - ETFs are described as pooled investment vehicles that trade on exchanges like stocks, offering more control than traditional mutual funds, including the ability to place limit orders and trade intraday [3][4] - Recent developments allow trading ETFs without incurring trading fees or commissions, making them cheaper and easier to purchase in smaller amounts [5] Group 2 - Different types of ETFs carry varying levels of risk, with index (passive) ETFs known for their low cost and transparency, while active ETFs are professionally managed with the goal of outperforming the market [6] - Investors must manage risk themselves with index ETFs, whereas active ETFs provide professional guidance, which may be beneficial in volatile markets [7][8] - It is important to note that diversification through ETFs does not eliminate risk, and assuming that diversified investments are inherently safe would be a mistake [8]