Passive Investment Company
Passive investment companies offer a strategy focused on mirroring the performance of a specific market index or segment rather than actively trying to outperform it. This approach, often called “index investing,” prioritizes cost-effectiveness, diversification, and simplicity. These companies manage funds, typically Exchange Traded Funds (ETFs) and index mutual funds, that are designed to replicate the returns of well-known indices like the S&P 500, the Nasdaq 100, or the MSCI EAFE.