1, broad-based index funds cover a wide range, including many industries, such as liquor, banking, securities and so on, while industry index funds cover a relatively narrow range, such as liquor industry index funds, which only include liquor.
2. There are not many investment targets of industry funds, and the positions of each target are relatively large. If investors choose the right industry, they can get higher returns. If they choose the wrong industry, the whole income will not be too good, with great fluctuations and high risks. However, broad-based index funds choose more investment targets, and the positions of each target are relatively small, with relatively small risks and overall stability.