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Strategy

Index / Passive Investing

Track the whole market via an index.

Long-termPassiveJohn C. Bogle

Core idea

Instead of picking individual stocks, you buy an entire market through an index fund or ETF (e.g. a broad global index). The goal is to match the market's return, not to beat it.

How it works

You pick one or a few broadly diversified index funds/ETFs, invest regularly and hold long-term. Costs and diversification are central.

Pros

  • Very broad diversification
  • Low costs
  • Very little time required

Cons

  • No chance to outperform the market
  • You carry the full market risk
Known for
John C. Bogle

For educational and informational purposes — not investment advice, not a recommendation to follow this strategy.