What are the differences between ETFs and mutual funds?

ETFs (Exchange-Traded Funds) and mutual funds are both investment vehicles, but they differ in structure and trading. ETFs are traded on stock exchanges like individual stocks, meaning they can be bought and sold throughout the trading day. Mutual funds, on the other hand, are priced at the end of the trading day, with transactions occurring at the daily closing price. ETFs often have lower expense ratios compared to mutual funds, and they tend to be more tax-efficient. However, mutual funds might offer active management, while most ETFs are passively managed. Additionally, mutual funds typically require a minimum investment, whereas ETFs can be purchased in smaller amounts through brokers.