What is the difference between ETL and ELT?

Answer

ETL (Extract, Transform, Load) transforms data before loading it into the target system, which suited traditional warehouses with limited compute and enforced quality up front. ELT (Extract, Load, Transform) loads raw data first and transforms it inside the target using its compute, which fits modern cloud warehouses and lakes that scale elastically. ELT keeps raw data available for reprocessing and lets analysts transform with SQL using tools like dbt, while ETL can reduce storage and apply governance before landing. The right choice depends on your platform's compute model, governance needs, and data volume.