ETFs and mutual funds are popular options for investors. Both offer diversification but differ in structure. While ETFs trade like stocks, mutual funds are priced once at the market close. ETFs typically have lower fees and more tax efficiency than mutual funds. However, mutual funds offer active management and flexibility for automatic investments. Investors should consider factors like cost, investment strategy, and trading preferences when choosing between the two options. Ultimately, the choice between ETFs and mutual funds depends on personal financial goals and risk tolerance. Research and consultation with a financial advisor can help make an informed decision.