How Are ETFs Different from Mutual Funds? Although ETFs carry some advantages over other types of mutual funds, each fund comes with it's own advantages and disadvantages. Consider the case of Crystal: Crystal 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, option for Crystal. â–¼ is a good