Passive investing

In contrast to expectations, passive investment strategies can be considered as one of the most robust, solid investment strategies. Moreover, these investment strategies are simple and therefore impose only a small threshold for any (potential) investor. Additionally, this type of strategy does not require lots of time investment. Hence, passive investing keep cost low (transactions, management fees, etc.) therefore enhancing your portfolio performance. We start explaining passive investing by starting of with ETFs, discussing total expense ratios (TER) followed by adding more asset allocation freedom through sector ETFs. Additionally, we discuss how other forces such as the bid-ask spread or the variance drag can negatively contributes to the portfolio’s performance.