Market indexes have come a long way in the last 25 years. Today, more than ever, indexes can be effective tools for financial advisors in constructing client portfolios, provided one knows how to best take advantage of them.
In the early 1980s, the use of market indexes in investment management was still in its infancy. Professional investors were just beginning to use indexes as benchmarks for their performance. But their use as the basis for passive investment vehicles was limited.
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