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