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Morningstar’s Guide to Passive Investing

Over the last few decades, passive funds have seen a remarkable increase in popularity. In the seemingly never-ending debate about the efficacy of active vs passive investment strategies, passive funds have benefited from a volatile market environment that has led to a steady shift away from actively managed funds.



As investor preferences shift, there has been a surge in demand for more sophisticated investment strategies. This guide provides an overview of the passive landscape, outlining several factors that have driven flows into passive funds while highlighting how Morningstar’s long history of independent research and ratings can help investors make more informed decisions in the growing passive space.

In this Guide, you’ll learn more about:

  • The benefits and limitations of passive strategies 

  • The passive landscape and why investors are increasingly picking passive

  • Dynamic investment strategies that combine active and passive
  • How firms can leverage Morningstar’s independent research and ratings to develop first-class strategies