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Let’s talk about actively trading versus passively investing. Actively trading is when you are buying and selling stocks with the goal of buying low, selling high, and thereby “beating the market” by doing this. Many mutual funds and some ETFs are managed by folks who are actively trading inside the fund. These funds are called “actively managed”. Passively managed is the opposite. Someone isn’t going inside the fund to buy and sell on the daily— instead a fund is created to mirror an index and
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Let’s talk about actively trading versus passively investing. Actively trading is when you are buying and selling stocks with the goal of buying low, selling high, and thereby “beating the market” by doing this. Many mutual funds and some ETFs are managed by folks who are actively trading inside the fund. These funds are called “actively managed”. Passively managed is the opposite. Someone isn’t going inside the fund to buy and sell on the daily— instead a fund is created to mirror an index and
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