Most stock-picking pros underperformed in 2023's market recovery 🫤

New data confirms this persistent trend 📊

Once again, most actively managed funds underperformed the S&P 500. (Source: S&P Dow Jones Indices)

It remains incredibly difficult to generate returns in the stock market that beat (or outperform) a passively managed fund tracking the S&P 500.

According to new data from S&P Dow Jones Indices (SPDJI), 59.7% of U.S. large-cap equity fund managers underperformed the S&P 500 in 2023.

“This figure was better than might have been expected given the dominance of the U.S. equity market’s largest stocks,“ SPDJI’s Anu Ganti said.

As you stretch the time horizon, the numbers get even more dismal. Over a three-year period, 79.8% underperformed. Over a 10-year period, 87.4% underperformed. And over a 20-year period, 93% underperformed.

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 📉