alt Hacker NewsThat sounds like a "no true scotsman" argument. Even passive investors need to pick some methodology of how to pick assets and how to relatively weigh them, and while you can make that as mathematically simple as possible, it's arguably an active decision.
Or would you say that e.g. an ETF tracking MSCI ex-US is not a passive fund?
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bitmasher9 • yesterday at 6:25 PM
I’d also argue that "passive investor" applies more to the buy and hold strategy when paired with low engagement in the account (few transactions, or scheduled transactions).
I’d consider someone that puts $50 into Coca Cola stock every paycheck a passive investor
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> would you say that e.g. an ETF tracking MSCI ex-US is not a passive fund?
Assets aren’t passive or not; investing styles are. The degree to which one’s returns earn from, or are expected to earn from, selection effects determines if you’re investing passively or actively. If I say trade SPYs, I’m an active investor. If I buy and hold a custom broad-market benchmark, I’m passive. Buying MSCI ex-US without a hedge is an active investment decision. If it’s bought and held it’s more like a passive strategy over time, provided the U.S. doesn’t dramatically over or underperform the global markets.