Passive Investing

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Passive Investing.

Also called a “buy-and-hold” strategy, passive investing involves buying a security to hold it long-term.  Passive investing refers to a portfolio strategy for long-term investment with minimal market trading.  The most common form of passive investing is index investing, where investors seek to replicate and hold a vast number of securities, imitating an index like the S&P 500.  Passive investment is often cheaper, less complex, and more lucrative after tax than actively managed portfolios.