How do interest rates affect exchange-traded funds (ETFs)?

Could you elaborate on the mechanisms that determine how interest rates influence Exchange-Traded Funds (ETFs)? Are there specific interest rate movements that tend to correlate with certain ETF performance trends? Do higher interest rates typically boost or hinder ETF returns? Furthermore, how do ETFs with varying investment strategies and portfolios respond differently to changes in interest rates? Additionally, is there a lag between interest rate movements and their effects on ETFs, or do they tend to react almost immediately? Understanding these relationships would be invaluable for investors looking to navigate the volatile markets.