The majority of funds within the ETF market can be categorized into the following types:

Equity ETF 
Tracks a particular equity index.

Bond ETF 
Provides exposure to a universe of bonds being tracked by the market (i.e., high-yield bonds, municipal bonds and Treasurys).

Sector and Industry ETF 
Provides exposure to a specific industry.

Commodity ETF 
Tracks the price of a certain commodity.

Style-Specific ETF 
Tracks a market-capitalization focus or investment style.

Foreign Market ETF 
Tracks markets outside of the U.S.

Inverse ETF 
Designed to profit from a decline in the value of an underlying benchmark by holding various short positions, or using a combination of advanced investment strategies to profit from falling prices.

Alternative Investment ETF 
Implements a nontraditional asset class or investment approach that can help manage volatility during times of uncertainty for traditional asset classes.

Passively Managed ETFs 
Passive ETFs are designed to closely track the performance of a particular index. This type of investment offers investors the closest thing to investing in an index by providing direct access to the underlying securities making up that index. This passive investment approach also helps contribute to relatively low fees.

Actively Managed ETFs 

Active ETFs are relatively new and have become increasingly popular in recent years as investors have embraced these vehicles as a means of combining the talents of experienced and professional management teams with the benefits of the exchange traded structure. Unlike traditional passive ETFs, which are designed to track an index, actively managed ETFs permit the fund manager to make more active decisions regarding security selection in an attempt to outperform the index. Active ETFs are generally more expensive than passive ETFs, since the overhead and expenses required to run an active ETF are greater.