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What is the difference between a mutual fund and an ETF?
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A mutual fund is a professionally managed portfolio of securities that typically invests in a variety of asset classes such as stocks, bonds, commodities, and other investments. An ETF (Exchange Traded Fund) is a type of security that tracks an index or a commodity basket, and trades on an exchange like stocks. Mutual funds are often more diversified than ETFs and can provide investors with access to different types of investments. However, ETFs tend to be cheaper and easier to buy and sell.