ETL is a process that involves extracting data from multiple sources, transforming it to fit operational needs, and loading it into a data warehouse. It provides a method of moving data from various source systems into a data warehouse to enable complex business analysis. The ETL process consists of extraction, which gathers and cleanses raw data from source systems, transform, which prepares the data for the data warehouse through steps like validation and standardization, and load, which stores the transformed data in the data warehouse. ETL tools automate and simplify the ETL process and provide advantages like faster development, metadata management, and performance optimization.