Passive, or passive investment strategy
Passive usually refers to a passive investment strategy, which means an investment team or fund manager isn't making active investment decisions to try to beat an index. Instead, in a passive strategy, they endeavour to replicate the performance of an index. Because there's no human expertise involved, passive ETFs usually have lower fees. Fans of passive investing point to evidence that in the long run, it's unusual for an actively managed fund to beat an index and they prefer the low fees.
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
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