When you're constructing portfolios for your clients, using low-cost index ETFs and managed funds can serve as the foundation for an investment strategy. These offer an effective way to achieve broad diversification and can be easily positioned to help meet your clients' risk and return requirements.
And since index funds seek to track market returns, establishing performance expectations with investors is much simpler. That's just one of many benefits. Index-based investment strategies are typically low in their portfolio turnover, relative to active strategies, which can help reduce an investor’s tax burden.