Tag Archives: SPIVA

Stock Picking AI? Elementary, My Dear Watson

Keen watchers of the ever-developing exchange-traded product space may have noticed an intriguing development last week, as the first purely “artificial intelligence”-based stock-picking ETF launched.  Powered by IBM’s “Watson” platform, the fund sponsors claim to use a proprietary quantitative model to select stocks that will outperform, based on machine learning applied to vast data sets. One cannot help wondering Read more […]

Timeline of Percentage of Active Funds That Underperformed Their Benchmarks

The active versus passive debate has been a continuous subject of discussion in the evolving asset management industry.  S&P Dow Jones Indices launched the first SPIVA India scorecard in 2013 to provide a barometer on this subject. The Indian market has witnessed significant growth (albeit from a small base) in passive investment products that offer Read more […]

Comparing Active and Passive in Latin America – SPIVA® Latin America

The SPIVA Latin America Mid-Year 2017 Scorecard was released this week.  The report covers Brazil, Chile, and Mexico in selected fund categories.  In line with the rest of the world, widespread gains were seen in both fixed income and equity markets in Latin America in the first six months of 2017. The recent rise in Read more […]

Don’t Shoot the Messenger

Here are some recent headlines about the consequences of passive investing: Japan Central Bank’s ETF Shopping Spree Is Becoming a Worry Passive Market Share to Overtake Active in the US No Later than 2024 Passive investing boom is creating a ‘frightening’ risk for markets ETFs are taking over the world, and there’s nothing anyone can Read more […]

Why Did the Majority of A-REIT Funds Outperform in the Past 12 Months?

In the mid-year 2017 SPIVA® Australia Scorecard, the majority of Australian funds underperformed their respective benchmarks across most categories, similar to previous scorecards.  More than 80% of Australian Mid- and Small-Cap funds underperformed the S&P/ASX Mid-Small over the past 12 months.  In contrast, A-REIT funds stood out as the best-performing category versus their benchmark, the Read more […]

SPIVA Europe Mid-Year 2017 Scorecard: Active Versus Passive – Consistency Is Key

It’s that time of the year and the highly anticipated SPIVA Europe Mid-Year 2017 Scorecard is out.  European active fund managers are no doubt apprehensively looking to see how their industry is competing with the performance of their respective S&P DJI benchmark indices. At first glance, active proponents may breathe a sigh of relief for Read more […]

Market Agnosticism

This weekend’s Financial Times brought John Authers’ provocative article on the frequency of financial crises.  Along the way, John gives us some excellent advice: “We should all work on the assumption that we do not know what will happen next.” John’s view of crisis prediction applies equally to the quotidian work of investment management.  Since we don’t Read more […]

Retail Fee Premium and its Impact on Fund’s Performance: Observations From SPIVA® Institutional Year-End 2016 Scorecard

The impact of fees on managers’ performance continues to make headlines.  With the most recent round of actively managed fee reductions[1] taking place in February 2017, market participants can benefit from lower fees as managers compete for capital.  In the recently issued “SPIVA Institutional Scorecard – How Much Do Fees Affect the Active Versus Passive Read more […]

Tips and Tricks in Reading the Persistence Scorecard

Much has been written about the persistence of manager performance.  The S&P Persistence Scorecard attempts to track the status of top quartile and top half managers over specified subsequent periods.  Over the years, we have received a fair amount of inquiries from our readers regarding the computation, methodology, and interpretation of results.  This blog attempts Read more […]

Confusing Means and Ends

This morning’s Wall Street Journal informs us that the growth of exchange-traded funds has “propelled” this year’s surge in equity prices.  “Booming demand for passive investments is making exchange-traded funds an increasingly crucial driver of share prices….Surging demand for ETFs this year has to an unprecedented extent helped fuel the latest leg higher for the Read more […]