##  [# Passive Management Definition](/etf-education-center/etf-glossary/passive-management) 

 

# Passive Management Definition

 

 

Learn the definition of passive management and other ETF terminology from the etf.com glossary.



 

 

 

 

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[By ETF Glossary](/authors/etf-glossary)

 Jan 16, 2024

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## Learn more about Passive Management

Passive Management in ETFs signifies an investment approach focused on mirroring a specific index's performance. By eschewing active stock selection, these ETFs offer investors a cost-effective and transparent strategy, minimizing the need for continuous managerial intervention. Embracing a ""buy and hold"" philosophy, passive ETFs aim to replicate the index's returns, rather than beating it, attracting investors seeking a straightforward and low-cost avenue for diversified market exposure. This approach not only aligns with a long-term investment horizon but also positions investors to benefit from broad market trends while minimizing the potential drawbacks associated with active management.

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  ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock…   [View Bio](/authors/etf-glossary)

 



 

 


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