Passive index investing has gained significant popularity since the introduction of passive index-based mutual funds in the 1970s and then similar ETFs in 1993.
Passive index investing has gained significant popularity since the introduction of passive index-based mutual funds in the 1970s and then similar ETFs in 1993. Unlike actively managed funds, where an individual or team makes decisions on the underlying assets in an attempt to beat the market, passive mutual funds and ETFs track an index like the S&P 500; they don't work to beat the market so much as match it.