Passive management


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Passive management

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.
References in periodicals archive ?
Passive management or index investing is an approach that uses investment funds to replicate the performance of indexes (like Spain's Ibex 35 or the S&P 500 in the U.S.) According to Martinez, passive management is on the upswing because with lower commissions, it is cheaper, and thus contributes to the democratization of investing.
The podcast is focused on providing information on everything from Australasian shares, active versus passive management, thoughts on the tax working group and how the markets affect returns.
Yet, speakers at the 2018 Best of PSNC [PLANSPONSOR National Conference] said there is a place for both active and passive management in defined contribution plans.
Leveraging on Systematic, Quantitative and Scientific investment methodologies, Ping An ETFs are meant to offer investors transparency, consistency, low fees and passive management. Ping An Nasdaq 5HANDL* ETF is the first multi-asset ETF in Hong Kong market that aims to offer exposure to a balanced portfolio, and Ping An Nasdaq AI & Robotics ETF is the first Hong Kong-listed ETF with AI and robotics theme that allows investors to ride on the global AI and Robotics trend.
Zero fee rate funds are part of a continuing trend of increased offerings of lower-cost, passive management products.
Three prominent investment styles prevail: active management, passive management and factor management.
TPYP employs a passive management approach designed to track the performance of the Tortoise North American Pipeline Index, which is a proprietary rules-based, capitalisation weighted, float adjusted index that tracks the overall performance of equity securities of North American pipeline companies.
We do play in some of the passive management products: we have an ETF business that we're building and we're growing.
Multifactor investing and its offspring, smart beta--which delivers factor exposure through an index-based product--have capitalized on the industrywide shift from active to passive management since the crisis.
Over the last nine years there has been very little advantage for active over passive management. "If you want to be less correlated, one of the obvious moves is back into active management, working with firms like ADS Securities," Ghanem told WEALTH.
Much has been said about active and passive management in the past few years -- and we have weighed in on that issue.