There's No Such Thing as Purely Passive

Passive investing has become a major feature of investment markets. It offers a rules-based way to invest in broad baskets of shares, bonds, or other assets. But passive investing is also sometimes misunderstood. It is often presented as simple, neutral, and almost decision-free. Passive investing does remove some decisions; it does not remove decision-making. You still have to choose which index your investments are going to track. That choice can have a very significant influence on what you actually own. Used without proper consideration, passive funds can quietly introduce large unintended active bets into your portfolio.