Long-term investors benefit greatly from passive index investing, particularly those saving for retirement or other distant goals.
But this isn't just a rookie move: experienced investors also invest heavily in such funds, which now make up about half of all volume traded in mutual and exchange-traded funds combined. Long-term investors benefit greatly from passive index investing, particularly those saving for retirement or other distant goals. The buy-and-hold nature of passive index investing allows investors to ride out short-term market fluctuations and benefit from the power of compound growth over time. In addition, the lower fees of passive investing can lead to significant savings over time.