What’s the difference between active and passive management? | Vanguard Charitable

What’s the difference between active and passive management?

Active and passive management are two different approaches to investing and offer their own advantages. 

 

Active management is an investment approach that seeks to exceed the average returns of a particular financial market or market segment. In selecting securities to buy and sell, active managers may rely on, among other things, research, market forecasts, quantitative models, and their own judgment and experience. 

 

Passive management refers to index- and exchange-traded funds, which have no active manager and typically lower fees. 

 

Vanguard Charitable offers investment options with both active and passive management style so you can select your preferred investing approach for your charitable account. 

 

Explore our investment options.

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