It continues to be incredibly difficult to generate returns in the stock market that beat (or outperform) a passively managed fund tracking the S&P 500.
According to S&P Dow Jones Indices (SPDJI), 59.7% of U.S. large-cap equity fund managers underperformed the S&P 500 during the first half of 2023.
As you stretch the time horizon, the numbers get more dismal. Over a three-year period, 79.8% underperformed. Over a 10-year period, 85.6% underperformed. And over a 20-year period, 93.6% underperformed.
βTwenty-three years of SPIVA data has taught us that successful active management is difficult, and the remarkable performance of the S&P 500βs largest stocks made it particularly difficult in the first half of 2023,β SPDJIβs Craig Lazzara said on Thursday.
This 2023 performance follows 13 consecutive years in which the majority of fund managers in this category have lagged the index.
Past performance is no guarantee of future results π
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