There are varying opinions. However, passive in my mind is an instrument that follows a market cap weighted index. Factor funds are active. There are many good rules-based factor funds (I invest in a couple), but they cannot be passive because they deviate from market weights. I'll use Vanguard funds as examples. The most truly passive ETF is VT. The most truly passive ETF for the US is VTI. The most truly passive ex-US ETF is VXUS. Anything else, in my opinion, is making a decision and is some form of active.
Target date funds can be mostly passive like Vanguard's. However, even those make a decision on the US/ex-US split. There are many target date funds that are not passive at all.
Target date funds can be mostly passive like Vanguard's. However, even those make a decision on the US/ex-US split. There are many target date funds that are not passive at all.
Statistics: Posted by Agitated_Analyst — Wed Nov 27, 2024 7:12 am