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Mid-Year Index vs. Active Update

Samuel A. Kiburz, Senior Vice President, Chief Investment Officer Oct 6, 2022
chart looks at Equity Funds underperforming their benchmarks

Contents

Twice a year, S&P Dow Jones updates their SPIVA (S&P Indices Versus Active) report.

Not only do US active managers underperform 92% of the time over 10 years on an absolute basis, but underperformance goes up to 97% when you factor in risk. This means that you only have a 3% chance to beat the market using active funds.

Yes, year to date, active management did a little bit better with only 52% underperforming, but even with all the turmoil this year, it’s still roughly a coin toss. With underperformance quickly increasing to 90% after three years for risk adjusted returns, it’s not worth the risk.

Choose your horse wisely.
Chart of the Day

About the Author

Samuel A. Kiburz, Senior Vice President, Chief Investment Officer
Samuel A. Kiburz, Senior Vice President, Chief Investment Officer

Samuel serves as Senior Vice President, Chief Investment Officer for the Crews family of banks. He manages the individual investment holdings of his clients, including individuals, families, foundations, and institutions throughout the State of Florida. Samuel has been involved in banking since 1996 and has more than 20 years experience working in wealth management.

Investments are not a deposit or other obligation of, or guaranteed by, the bank, are not FDIC insured, not insured by any federal government agency, and are subject to investment risks, including possible loss of principal.

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