<prompt> Human: Which of these is better for a new investor? Im looking to invest 5000-6000. Is one preferable?  <response>: A mutual fund can follow an index index or passive mutual fund. Or it can be actively managed by a team active mutual fund. Index funds have lower expenses. Similarly, an ETF can follow an index index ETF or be actively managed too. Furthermore, a mutual fund and ETF can be the same fund most Vanguard funds are structured in this way.The difference between mutual funds and ETFs are the trading mechanisms: You trade mutual funds with the fund company. There is usually a minimum 1000-3000 to buy into a fund. After the minimum is met, there is usually no minimum for additional purchases. You trade ETFs on a stock exchange. Depending on the brokerage, you may have to pay commission to buy them. Im looking to invest 5000-6000. Is one preferable?Have you read these? I have X Investing 