ETF vs Mutual Fund

ETF and Mutual Fund (MT) both have similarities and differences.

Similarities

  • Both are low risk than investing individual stocks and bonds.
  • Both have a wide range of selections what to invest.
  • Both are managed by professionals.
  • Both offer index fund or actively managed fund.
  • Both are free to trade in some platform.

Differences

  • ETF has smaller minimum to invest if this is a concern.
  • ETF allows you to trade any time during business hour vs mutual fund can only calculate the price at the end of the day.
  • Mutual allows you to automatically repeat the same transaction.