Both pool money into a basket. An ETF trades on an exchange all day like a share; a mutual fund prices once after the close. For a long-term holder the difference is mostly plumbing — trading convenience, minimums, tax handling — not strategy.
Check yourself
The main difference between an ETF and a mutual fund is…
What they can invest in
How and when they are bought and priced correct
One is regulated
The wrapper differs. The underlying idea — a diversified basket — is the same.
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