Even though they are very similar, ETFs beat Mutual Funds in different aspects.

Compared to mutual funds, ETFs have the following benefits:

🅐 Low costs. Sarwa's selected ETFs' average expense ratio is roughly 0.1%, while mutual funds' expense ratio is 1-2%.

🅑 Liquidity. Since they trade like stocks, meaning you can enter and exit the markets faster.

🅒 Passive investment. 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.

🅓 Transparency. Since they disclose their earnings daily, allowing you to know your earnings at any point in time.

🅔 Low minimum initial 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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