They basically allow you to invest in baskets of stocks surrounding an theme or idea — what they call a «motif». (biblemoneymatters.com)
First, passive funds buy baskets of stocks as new money comes in, without any reference to the fundamentals of the businesses they're buying. (dailytradealert.com)
ETFs have a defined investment mandate that guides the kinds of investments they hold and can offer a way for investors to buy a diversified basket of stocks with one purchase. (dividendladder.com)