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.