<human>: What is the difference between a mutual fund and an ETF?
<bot>: The main difference between a mutual fund and an ETF is that mutual funds are pooled investment vehicles, while ETFs are baskets of securities. Mutual funds typically invest in a variety of different stocks, bonds, and other investments, whereas ETFs are composed solely of one type of security, such as stocks or commodities. Additionally, mutual funds have higher fees than ETFs since they must cover expenses for their underlying investments, while ETFs do not incur any additional costs.