What is one characteristic of a passive investment strategy under the buy and hold approach?

A key characteristic of a passive investment strategy, particularly the buy and hold approach, is that it involves minimal activity after the initial investment. Investors following this strategy typically purchase securities with the intention of holding them for a long period, regardless of short-term market fluctuations. The rationale is that over time, the market tends to appreciate and reward those who resist the urge to make frequent changes to their portfolios.

This approach contrasts with active strategies, which may involve frequent trading in response to market conditions or reliance on market timing. The buy and hold method is based on the belief in the efficiency of markets and the idea that it is difficult to consistently outperform the market through active management. As such, once the securities are acquired, minimal adjustments are made, reflecting the strategy's long-term focus and the belief in the underlying growth of the investments.