ETF funds have the following advantages:
1, with high transparency, completely copied the constituent stocks of the index, making it easier to understand the portfolio characteristics of ETF funds.
2. The transaction cost is low. ETF fund index investment has the characteristics of low management fee and low transaction cost.
3, the investment risk is small, ETF funds package a basket of stocks, investors are equivalent to trading a basket of stocks, reducing the risk of individual stocks stepping on thunder.