Passive Investment Management

Passive Investment Management

Passive investment management involves matching an index or underlying benchmark. Given the lack of discretion involved it is generally a lower cost strategy than active investment management. Over the years it has become more and more difficult to beat the index and so passive strategies have become more popular and frequently outperform their more active counterparts. Passive strategies now have in excess of $15trn in assets under management in a mixture of index funds and ETFs.

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