Silvia did a great job! You can read the detailed explanation again here:
ETF is an abbreviation for exchange traded funds. In other words, ETFs are funds that are traded on the stock exchange. ETFs directly track an index (such as the SMI) which means they are passively managed – in contrast to many traditional funds. Since ETFs can be traded on the stock exchange, as an investor you can constantly keep track of the price trends of your ETFs. The current price of traditional funds is usually published only once a day. ETFs have less expensive administrative and distribution costs than traditional funds. However, since ETFs are traded on the stock exchange, as an investor you have to pay stock exchange fees, stamp duties and brokerage fees .
