Lastly, mutual funds are usually purchased through the companies themselves, while ETFs are bought and sold on exchanges like stocks. Is A Mutual Fund Better Than an ETF? It is just a matter of opinion of which one is better. Some investment gurus swear by mutual funds, while others point to buying index funds. There are many investments to choose from. You can buy stocks, bonds, exchange-traded funds, mutual funds, precious metals, real estate investment trusts, and more. Two popular options are very similar but do have some major differences. These two are exchange-traded funds and mutual funds.