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 .
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Reading Time 2 Minutes
Reading Time 2 Minutes
Created on 13.03.2019
Put it simply, please! ETF
Silvia Stojanoski, an Investment Business Support employee at PostFinance, explains in 45 seconds what an exchange traded fund (ETF) is and how it differs from traditional funds.