Pros and cons of trading crypto indexes

[easybits]

Since the introduction of the first cryptocurrency index from Bitotal i keep wondering what are the differences between trading a coin and an index.
By trading a coin you can make more profits but you can also lose more. It can be nice when there is a pump but painfull when there is a dump.
I don't see it happen by an index because the risk is spread over multiple coins but maybe i'm wrong.
I trade the AEX dutch index for example and is like buying by a good news and sell by a bad news.
Do I only see the positive part or have I missed something?