Nearly!
You'll find that the electronic cigarette looks, feels and tastes like a real cigarette. (It's a little heavier, but we find most people get used to that very quickly.)
When you inhale on an electronic cigarette you take in a water vapour. The smoke effect is created by Propylene Glycol, which is also used in stage smoke. Propylene Glycol is a very safe substance which is also used in drinking water, air-conditioners, asthma inhalers and cosmetics. Crucially, though, no combustion takes place. And that means none of the smoke and tar that causes smoking diseases.