Comparing ETFs and mutual funds How are ETFs different from mutual funds? Although ETFs carry some advantages over other types of mutual funds, each fund comes with its own advantages and disadvantages. Consider the case of Eileen. Eileen is interested in investing in either an ETF or another type of mutual fund. She is 25 years old and has saved $10,000 that she would like to invest long-term to achieve maximum returns. If minimizing overhead expenses is her primary concern, is a good option for Eileen