ETF’sETF's are exchange traded funds. They are similar to mutual funds but tend to be better for investors because they are more flexible for trading, have less fees, and are more tax efficient. More are exchange traded funds. They are similar to mutual fundsMutual Funds are a company that professionally manages and invests pooled money from different investors. More but tend to be better for investors because they are more flexible for trading, have less fees, and are more tax efficient.