ETFs (Exchange-Traded Funds) and CFDs (Contracts for Difference) on underlying commodities, indices, and stocks are both considered derivatives. A derivative is a financial instrument that derives its value from an underlying asset or group of assets. In the case of ETFs and CFDs, the underlying assets are typically stocks, commodities, or indices. An ETF is a type of investment fund that tracks the performance of an underlying index, commodity, or group of assets. When you invest in an ETF, you are essentially buying a share in the fund, which gives you exposure to the underlying assets. The value of the ETF is determined by the value of the underlying assets. CFDs, on the other hand, are contracts between a buyer and a seller, where the buyer agrees to pay the seller the difference between the current value of an asset and its value at the time the contract is closed. CFDs are often used for trading purposes, as they allow traders to take advantage of price movements in the underlying assets without actually owning them. In summary, both ETFs and CFDs are considered derivatives because they derive their value from underlying assets. However, they are different types of derivatives with different characteristics and uses.