Why indexing is less controversial now

Joanthan Clements has long been one of my favorite WSJ writers and once again he nails it! In his most recent article (Nov. 6, 2005) he suggests that the reason indexing has finally caught on is because brokers and advisors no longer have as much of an incentive to fight it.

WSJ.com - Getting Going: "Yet the widespread acceptance of indexing has come only in the past few years. Indeed, as recently as five years ago, I would be inundated with scornful phone calls, letters and emails whenever I recommended index funds. Today, I don't get that reaction"

Why? In his words:

"I think the acceptance of indexing has been driven by two key developments: The proliferation of exchange-traded index funds, often known as ETFs, and the emergence of fee-only financial advisers."

Brilliant! Read the article! In fact, if you are in my class, definitely read the article! But be forewarmed, the article will not stay online for long.