It's a complicated story which I'm sure David_Jay could more thoroughly comment on, but based on what I've read, yes, the Israelites were a group of roaming, pastoral Canaanites. Canaan was also a vassal of Egypt for many years, which is another reason why the conquest of Canaan in the book of Joshua is rather myth.
The Exodus from Egypt is also suspect, because (for ONE thing) it's not like the escaping slaves could just walk across the sea and be out of Egypt's grasp. No, Egypt had men all around there.
And then there's also the fun bit about the first statement of monotheism being found in... Isaiah? Up till then, Yahweh was a god amongst other gods. It was not until Isaiah 44:6, which was not even written until long after Isaiah's death, that this was the ONLY god. And then you had the Shema Yisrael statement in Deuteronomy 6:4, etc. It's all very fascinating to see how this developed.
A Believer, please, please do yourself an academic favor and explore this topic.