Collections are site editor enabled searches. They provide automatic, folder like view, for the content fetched from the Plone site by criteria defined by the site editor.
They are useful to generate different listings.
Collections are internally called “topics” and the corresponding content type is “ATTopic”. Collections were renamed from topics in Plone 3.0.
Collections searches is driven by two factors
portal_catalog search indexes are not directly exposed to the collection criteria management backend, since portal_catalog indices do not support features like localization and user-friendly titles.
New criteria can be created through-the-web in Site setup -> Collection section. Click “All fields” to see unenabled portal_catalog criteria. Later the edited settings can be exported to GenericSetup XML profile using portal_setup tool (no need to create profile XMl files by hand).
portal_catalog indices can be added through-the-web on ZMI portal_catalog tool tabs.
If you still want to create XML files by hand, read more about it in Enable Collection Indices (fields for searching) for custom types HOW TO.