ETFs vs. Mutual Funds vs. Individual Stocks: Why I'm Putting More Into ETFs in 2027

Key Points Mutual funds and exchange-traded funds are both pooled investment vehicles. Exchange-traded funds have important advantages over mutual funds. I plan to use ETFs in 2027 to provide diversification, freeing me to focus on high-conviction individual stocks. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › I remember when the first exchange-traded fund (ETF) was introduced. The company I worked for at the time was quick to see the benefits the unique structure offered, and created indexes for early ETFs to follow. At this point, you could easily use ETFs to satisfy all of your investing needs. But that's not how I plan to use ETFs in 2027.