What is the difference between an ETF and a mutual fund?

Just a few key differences set them apart. The biggest similarity between ETFs (exchange-traded funds) and mutual funds is that they both represent professionally managed collections (or "baskets") of individual stocks or bonds. If you prefer lower investment minimums… An ETF could be more suitable for you.

Are mutual funds better than ETFs?

Both can be good options for investors but have some key differences that make one better suited than the other concerning an investor's investment goals. Mutual funds and ETFs may hold stocks, bonds, or commodities. Both can track indexes, but ETFs tend to be more cost-effective and liquid since they trade on exchanges like shares of stock.

What is the difference between mutual funds and exchange-traded funds?

Mutual funds and exchange-traded funds represent a popular way for investors to diversify but they have some key differences. While ETFs can be traded intra-day like stocks, mutual funds can only be purchased at the end of each trading day based on a calculated price known as the net asset value.