Exchange traded funds are like mutual funds because these funds permit the investor to buy shares of a collection of several stocks or shares of a collection of stocks and bonds, but, unlike mutual funds, they are traded during the day on the exchanges.

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Exchange traded funds (ETFs) are similar to mutual funds in that they offer investors the opportunity to buy shares of a diversified portfolio of stocks and/or bonds. However, ETFs are different from mutual funds in that they trade on an exchange, like individual stocks, and can be bought and sold throughout the trading day. Mutual funds, on the other hand, are only priced and traded at the end of each trading day.

Exchange Traded Funds Are Like Mutual Funds Because These Funds