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Topic
Passive investing
6 guides in Finabase Learn
- Buy and hold A long-term approach of buying investments and keeping them through market ups and downs instead of trading in and out.
- Efficient Market Hypothesis (EMH) The theory that prices quickly reflect available information, so consistently beating the market after costs is very hard.
- Index fund A mutual fund or ETF that aims to match the return of a market index by holding its constituents, usually at low cost.
- Index investing: passive vs. active funds and what the data shows What index investing is, how index funds track a benchmark, what S&P’s SPIVA scorecards show about active managers, and how to read tracking error.
- John Bogle and index investing: the cost matters hypothesis How John Bogle founded Vanguard and the first retail index fund, why he argued costs decide returns, the arithmetic behind it and what his critics and successors say.
- Why most active funds underperform: costs, arithmetic and luck Why most actively managed stock funds trail their index over time: Sharpe’s arithmetic, costs, skewed stock returns, survivorship and luck.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.