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Explained in plain English

What is passive investing?

Passive investing is a strategy where you buy and hold investments designed to mirror a market index, like the Nasdaq 100. Instead of trying to pick winning stocks, you aim to match the market's overall performance. So, when SpaceX joined the Nasdaq 100, passive funds tracking that index would automatically buy its shares.

Stories that explain this

SpaceX shares entered Nasdaq 100 following rule changes.

Questions this opens up

What is active investing? Can I do it myself? Are there risks?

Related explainers

Why do brokers rate 'buy'? How do global funds work? How do I start? What are index funds? Will my pension buy SpaceX? How do rule changes help? What's a Nasdaq 100? Are there different types of funds?

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