Passive investing involves a strategy where an investor aims to replicate the performance of a specific market index or benchmark rather than actively picking stocks or timing the market for trades. This approach often results in lower expenses, less tax liability, and a lower risk of correlating returns to market volatility. Common vehicles for passive investing include index funds, exchange-traded funds (ETFs), and buy-and-hold strategies, which are designed to limit transaction costs and administrative expenses that can erode investment returns over time.