Structure
Mutual funds are priced once a day at NAV and transact directly with the fund company. ETFs trade intraday on an exchange, with authorized participants creating and redeeming shares to keep price close to NAV.
Tax efficiency
ETFs are typically more tax-efficient in the US because the creation/redemption mechanism lets the fund shed low-basis shares without triggering a taxable event for remaining holders.
When mutual funds still win
For illiquid asset classes (some bond niches, frontier EM) the mutual-fund structure prevents the intraday premium/discount distortions that plague ETFs in those markets.
Not financial advice
This lesson is educational material, not personalized advice. Examples and case studies are illustrative. Trading carries real risk of loss — never invest money you cannot afford to lose, and consult a licensed professional for guidance specific to your situation.