Passive Investments
Also known as index funds or those funds that just buy all the underlying investments within their respective benchmark or index. Generally, passive investments are less expensive than active funds. Most passive funds are market weighted and others known as smart beta use other means like profits or dividends to weight the underlying investments as well as proactive trading techniques. Passive funds do not promise or seek alpha promising only market returns known as beta. ETFs or exchange traded funds are also known as passive investments.








