Is this article correct about the S&P 500 returns?

https://www.fisherinvestments.com/en-us/annuities/articles/what-are-indexed-annuities

"Second, the index performance used to calculate your payments likely won’t include dividends. This trims gains significantly—since 1926, the S&P 500 total annualized return (including dividends) is 10.0%. Absent dividends, it’s just 5.8%. That 4.2 percentage point gap is gigantic when extrapolated over long time periods. And then there is inflation—historically 3%, it eats away at indexed annuities’ returns even further."

Maybe I'm not understanding something, but they seem to be very critical of index funds. I'm fairly new to the market, but I thought index funds and ETFs were solid choices for those who can't afford numerous shares of diverse stocks.

Submitted April 20, 2018 at 01:13AM by collector_red https://ift.tt/2K0mOvN