There are several things that differentiate an ETF from a mutual fund, including:
Investment minimums:
ETFs can be purchased by the share, so the investment minimum can be low. On the other hand, mutual funds may require a minimum investment that can be much higher.
Cost and pricing transparency:
The fees and expenses of ETFs tend to be lower than those of mutual funds, but that's not always the case. Since ETFs are traded on an exchange like stocks, the price fluctuates throughout the trading day, so you can trade them anytime during market hours and know upfront what you're paying. With mutual funds, you can still place buy and sell orders when the market is open, but it won't be priced until after the market closes when NAV is calculated.
Tax implications:
ETFs typically can be more tax efficient because you only realize capital gains when you sell shares, whereas mutual funds pass the gains on to you in the year the fund realizes them for as long as you own shares.
Find out how ETFs could help strengthen your portfolio. Talk to a financial advisor.