An ETF is very similar to a mutual fund, being that they are both diversified, but there are some differences.
| ETF | Mutual Fund |
| Trades like a stock (on an exchange and throughout the day) | Trades at the end of the trading day through a mutual fund company |
| Usually lower expense ratios | Expense ratios vary |
| Usually passively managed and track an index | Passively and actively managed |
