"Active Investing Strategy vs Passive Investing Strategy"
ACTIVE FUNDS UNDERPERFORM THE "MARKET"
- According to the SPIVA report, there are relatively few ACTIVE* equity investment fund managers who are able to outperform PASSIVE** funds, over any given time period, either short-term or long-term.
*Active funds are those where the managers buy stocks that they believe will perform the best.
**Passive funds are those where the managers buy the shares according to the reference index (such as the S&P 500).
WHAT IS THE SPIVA* REPORT?
- Research report published semi-annually by S&P Dow Jones Indices comparing the performance of active equity funds against their respective benchmarks.
See below the results of mid-2022 edition, except US, Canada and Australia (end-2022).