Hi there! If you prefer lower investment minimums, an ETF is more suitable for you. Investors can buy an ETF for the price of 1 share (ETF's market price). Depending on the ETF, the price could range from as low as $50 to a few hundred dollars. Whereas, a mutual fund isn't based on the fund's share price. It is a flat dollar amount, most mutual funds have a $1,000 minimum that buys investors 10 shares of a hypothetical fund with a net asset value (NAV) of $100 per share. ETF provide investors real-time pricing and allows investors to use sophisticated order types that give the most control over the price. However, in a mutual fund, regardless of the time of day you place the order, you will get the same price as everyone else who bought and sold on that day. This price isn't calculated till after the trading day is over. ETFs typically track a specific market index whereas mutual funds are actively managed to buy or sell assets within the fund where fund manages attempt to beat the market and help investors profit. Personally, I started off investing in ETFs as it has a lower investment minimum and ETFs could be bought through virtually any online brokers whereas mutual funds were not always available through all brokers. Since I was focused on building wealth over the long time, the liquidity of ETFs are compared to mutual funds was another reason I choose ETFs over mutual funds.