What is the difference between ETF and Mutual Funds?

Did you know that over half of U.S. households invest in mutual funds? They are one of the most popular ways to grow wealth over time. But there’s another option, ETFs (Exchange-Traded Funds), that has gained huge popularity. ETF and Mutual Funds, let us invest in many stocks or bonds simultaneously. But they work differently. One trades like a stock, while the other is priced once a day. One may have higher fees, while the other is more tax-friendly.