Passive investing continues to reshape global markets as more investors shift toward low‑cost index funds. This trend reflects a growing belief that long‑term market exposure often outperforms frequent trading. With automation, diversified ETFs, and reduced fees, passive strategies have become accessible to everyday investors. Still, critics argue that heavy reliance on indexing may distort price discovery. As capital flows into broad market funds, some analysts warn of potential concentration risks. Understanding how passive vehicles influence volatility and long‑term returns is essential for modern portfolio construction.
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