Bankloch

In recent years, passive investing has gained significant popularity, particularly through low-cost, well-diversified ETF (Exchange-Traded Fund) portfolios. In Belgium, the term "hangmatbeleggen" (Dutch for "hammock investing," referring to this relaxed investment approach) was even named the word of the year in 2024. This style of investing is appealing, as research consistently shows that active investors — those attempting to beat the market through stock selection or timing — rarely outperform passive strategies. Passive investment portfolios provide broad market exposure, are cost-effective due to lower management fees and require minimal oversight. Moreover, with the growing popularity of ETFs, investors can now choose from a wide range of options, tailoring their portfolios to match their risk profile, investment horizon and personal preferences. A typical passive portfolio offers   long-term   average returns of around 7-8%, outperforming inflation and many ...