They are different kinds of investments. ETFs are typically passive, which means that the investments follow the guidelines of an index. Mutual funds are active, which means there is a portfolio manager who selects variations of the portfolio. Watch out! Mutual Funds have high fees compared to ETFs. They range from 0.25% to 2%. The ETFs Finhabits uses in its portfolios have fees ranging from 0.07% to 0.30%.

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