Etf funds and index funds are the same type of funds, both of which follow a specific index in order to obtain the same income as the index. Etf is an on-market fund, while index funds have both on-market funds and off-market funds, so investors want to trade on-market funds and choose etf funds. Investors want to trade OTC funds, choose index funds, and OTC funds can set fixed investment.

Investors can look at the tracking error index when choosing etf funds and index funds. Tracking error refers to the degree of deviation between fund and tracking target. Generally, the smaller the tracking error, the better. The smaller the tracking error, the closer the trend of the fund is to the tracking target.