Differences between Mutual Funds and ETFs

The surge of new investors in 2020 has spurred the growth of fund investment. Mutual funds and ETFs become popular choices for investors.

However, how to distinguish and choose between them has puzzled many new investors.

Basically, mutual funds and ETFs are a basket of investments managed by professional fund managers. What's more, they provide a simple, flexible, and comprehensive way to diversify investment portfolios.

The following are some main differences between them, which may help determine which instrument suits your investment goals and strategies.