Advantages of etf fund: 1, etf fund tracks specific index, which reduces the risk of fund stepping on thunder; 2. There is an arbitrage advantage, and etf funds arbitrage when there are premiums and discounts; 3. The utilization rate of funds is high, etf funds can be traded in real time, and the fund can get income after buying the transaction, and other funds can be traded after selling the transaction.

Disadvantages of etf funds: 1 There may be a big tracking error, which makes etf funds and indexes deviate greatly; 2. Market making is needed. etf funds are traded in real time, and fixed investment cannot be set. Investors need to make market in real time.

Advantages of index funds: 1. Index funds track specific indexes, so the risk of stepping on mines is relatively small; 2. Index funds do not need to stare at the market, saving time and effort; 3. When the market is good, index funds can get considerable income; 4. Index funds are passive funds, follow the index, and will not make wrong decisions because of the subjective factors of fund managers; 5. Index funds have both OTC funds and OTC funds, which are more selective.

Disadvantages of index funds: 1, index funds do not pursue the income beyond the market; 2. Index funds need to find suitable trading points and choose good timing.