Passive Investing

An investment strategy that seeks to match market returns rather than beat them, typically through index funds or ETFs that track a benchmark like the S&P 500. Pioneered by Vanguard founder Jack Bogle in 1975, passive investing now accounts for more than half of all U.S. equity fund assets. The strategy relies on the efficient market hypothesis and the mathematical reality that, after fees, the average active manager underperforms the index over long periods.