An index fund is an example of passive asset management.

Question

Quizplus · Accepted Answer

An index fund is a type of mutual fund or exchange-traded fund that aims to track or replicate the performance of a particular market index, such as the S&P 500. This strategy is considered passive because the fund manager does not actively choose individual investments or try to outperform the market. Instead, the fund simply mirrors the index it is tracking, which typically leads to lower fees and a more consistent return over time.

An Index Fund Is an Example of Passive Asset Management