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LESSON 3 · Invest Without Fear

ETFs Vs Mutual Funds

Both ETFs (Exchange-Traded Funds) and mutual funds bundle many investments into one package. The key differences come down to cost and flexibility — and they matter more than they first appear.

ETFs trade like stocks throughout the day and typically charge lower fees — many have expense ratios under 0.1%. Mutual funds only trade once daily at market close and often carry higher fees plus potential sales charges called loads.