There are articles that say "buying" an index is a very good approach to investment, that beats most of the active funds. But, looking at the value of FTSE 100 for the past 20 years, it has roughly stayed within a 4000 to 7000 points interval. So, for someone who just buys at regular intervals, I think that such on index brings roughly no value in the long run, especially not the average 8%/year that I read about.
I understand that there are other indexes (e.g. DJIA) that have performed much better, but can someone please explain to me whether there is something that I have missed about this passive approach to investment?