ETL extracts raw data from sources, transforms it on a separate server, and loads it into a target database. ELT loads raw data directly into a data warehouse, where data cleansing, enrichment, and transformations occur. While ETL has been used longer and has more supporting tools, ELT allows for faster queries, greater flexibility, and takes advantage of cloud data warehouse capabilities by performing transformations within the warehouse. However, ELT can present greater security risks and increased latency compared to ETL.