ETFs vs mutual funds

ETFs (Exchange-Traded Funds) and mutual funds are both investment options that pool money from many investors to buy a diversified basket of assets. ETFs are traded on stock exchanges like individual stocks, allowing for real-time buying and selling throughout the day. Mutual funds are bought and sold at the end of the trading day at a set price, called NAV. ETFs often have lower fees and more flexibility for trading, while mutual funds may have minimum investment requirements and are managed based on the investor’s chosen fund, making them suitable for long-term, passive investing.