Passive investing

Passive investing

Putting money into a profitable business opportunity that is deemed passive by the IRS and thus benefits from tax deductions.

Passive Management

The practice of a money manager or a team of money managers making investment decisions on what securities to include in a fund or portfolio, and then leaving those securities largely unchanged for a significant period of time. To give a very simple example, an investment manager may buy every stock on the Dow Jones Industrial Average and hold them for a period of five or 10 years. Passive investment managers seek a well diversified set of securities. See also: Indexing, Active investing, Value investing.
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In many ways, this stampede toward passive investing - in which people put their money into funds that track indexes and broader market themes as opposed to relying on human stock pickers - is uncharted territory.
An investment management behemoth practically synonymous with passive investing recently made headlines by announcing what the company calls its first actively managed ETFs.
Several factors are casting a pall over industry players: low returns, lower flows, pricing pressure, performance challenges, a big shift to passive investing, increasing costs and margin compression.
Such low-cost, automated platforms based on passive investing are very popular in North America and there's no reason why young professionals in the Middle East shouldn't have access to an accessible and proven way to build wealth.
Tencent's shares do not have voting power and it will not have a board seat, but the two companies broadly believe in cooperation that goes beyond passive investing, according to Snap's filing on Wednesday.
In the ongoing debate of active versus passive investing we are optimistic for both.
At the heart of passive investing is index investing.
But analysts said the results highlight the tough market for active fund managers, as investors are shunning the hefty fees of star managers in favour of more passive investing.
We are excited to build on ICEs index services, which complement our leading fixed income pricing solutions in serving the demand for indexation as passive investing grows, said Lynn Martin, President & COO of ICE Data Services.
Digitisation, the rise of passive investing, longevity, regulatory pressure, consumer awareness of costs, pension reforms - the list goes on," he argues.
Passive investing selects a benchmark and then tracks the benchmark closely at minimal cost, and does not attempt to beat the market.
Advisor Portfolio Construction 2016: Responding to fee pressure, regulations and passive investing.

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