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ETF trading systems are done on an exchange during trading day. This transaction is subject to a broker’s commission, which depends on the brokers plans and conditions. On the other hand, mutual funds are generally traded without the need for a broker since the mutual funds are directly obtained from the fund company where it came from and do not require a brokerage fee. Most investors go for ETFs over mutual funds because of its lower expense ration compared to the former. Not only that, its shareholder-related expenses are also lower than mutual funds for it does not have to maintain cash reserves to be used in redemptions.