You’ve probably heard the term “passive investing.” But what does it really mean to “passively” invest? I wanted to share some insights about passive investing with you today that will hopefully clear up the confusion. While the word “passive” may imply that you’re sitting back and doing nothing, this couldn’t be further from the truth. Passive investing aims to replicate the performance of a specific market index or benchmark, such as the S&P 500. By doing so, passive investors seek to capture overall market returns instead of trying to outperform the benchmark. The case for passive management is based on the idea that the majority of money managers consistently fail to beat their comparative indexes. Passive investors argue that markets are efficient, meaning all known information is already reflected in stock prices. Instead of investing for a “quick fix,” you’re investing for the long haul. If I can help explain this or any other concept, I’m happy to do so. | 
