Exchange-Traded Funds (ETFs) and Mutual Funds are popular investment vehicles that offer investors exposure to diversified portfolios of securities. While they share similarities, there are key differences between ETFs and Mutual Funds. In this article, we will explore what an ETF is, how it differs from a Mutual Fund, and their respective advantages. An ETF is an investment fund that trades on stock exchanges, similar to individual stocks. It is designed to track the performance of a specific index, such as the S&P 500, or a basket of assets like stocks, bonds, commodities, or a combination thereof. ETFs provide investors with a way to gain exposure to a wide range of securities without having to buy them individually. The value of an ETF fluctuates throughout the trading day as its price is determined by market supply and demand. On the other hand, a Mutual Fund is an investment vehicle managed by a professional fund manager. It pools money from multiple investors and invests it in a diversified portfolio of securities based on the fund’s investment objective. Mutual Funds are priced once a day at the