Even though they are very similar, ETFs beat mutual funds in different aspects.

Compared to mutual funds, ETFs are:
Lower cost. Sarwa's selected ETFs' average expense ratio is roughly 0.1%, while mutual funds' expense ratio is 1-2%.
More liquid since they trade like stocks, meaning you can enter and exit the markets faster
Passive, while mutual funds are active investments. Studies after studies have shown that active investments do not hit their benchmarks, deeming passive investing a better strategy
More transparent, since they disclose their earnings daily, allowing you to know your earnings at any point in time
Lower minimum investment, allowing you to begin investing with a much smaller amount.

All these factors considered make ETFs a better choice for investors than mutual funds
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