More than three-quarters of active mutual fund managers are lagging S&P 500 and DowA new report shows.
The S&P Indices versus Active (SPIVA) scorecard, which tracks the performance of actively-managed funds against their respective portfolio benchmarks, recently found that 79% of fund managers underperform the S&P in last year. It reflects an 86% increase over the past 10 years.
S&P Global CEO Doug Peterson told CNBC’s “ETF Edge“The quarterly report is built on non-public information.
“The only people who have access to it have very strict rules about their own standards of performance and behavior,” Peterson said last week. “[The S&P Dow Jones Indices committee] can look at the economy as a whole or look at different aspects of what they want the index to work against. “
The company has been releasing its annual SPIVA report since 2002. It first focused on the United States and then expanded to countries around the globe.
The latest report marks the 12th consecutive year that an actively-managed large-cap fund has on average underperform the S&P 500 index, noted Todd Rosenbluth, CFRA senior director of ETFs and mutual fund research.
Rosenbluth said on “ETF Edge”. “It costs more for active managers when they’re trying to compete with the essentially free S&P 500 through an ETF wrapper.”
