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The True Spirit of “Passive”

There’s a lot going on in a passive portfolio.

Passive management represents perhaps the most important investment development since the introduction of mutual funds. This patient, disciplined investment philosophy eschews stock picking and market timing in favor of a long-term, buy-hold-rebalance strategy.

Academic research has shown that a passively invested portfolio will outperform a prediction-based, actively managed one simply because of fees and expenses. But sometimes, investors hear the word “passive” and get the wrong idea.

Passive investing typically involves far less trading than active management. It is an approach built on patience and persistence. But don’t mistake all this patience and discipline for set-it-and-forget-it. Behind the calm exterior of the passive portfolio is a beehive of activity. The passive advisor proactively orchestrates a wide range of decisions and actions that keep the portfolio aligned with the interests and goals of the investor.

Click to read more about the True Spirit of Passive from The BAM Alliance, then check out What We Do at JDH Wealth.


The BAM ALLIANCE is an active community of more than 130 independent wealth management firms throughout the United States that have discovered a better way to help investors and their families take control of their financial futures and achieve their most important goals.

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