Tag Archives: active vs. passive

Market Conditions Favored Government Bond Funds in Second Half of 2018

The SPIVA® U.S. Year-End 2018 Scorecard shows a reversal of the relative short-term performance of fixed income funds at the end of 2018 from six months prior. Combined with the interest rates move, this might shed some light on understanding the duration positioning of active funds. We focus on government bond funds for our analysis, Read more […]

Can You Beat the Market Consistently?

Our SPIVA® readers often ask what percentage of outperforming funds goes on to beat the market over the following years. Our latest research report, Fleeting Alpha: The Challenge of Consistent Outperformance, answers that exact question in detail. In this blog, we demonstrate the difficulty and likelihood of consistently outperforming a benchmark. Using trailing three-year returns Read more […]

Finding Better Beta in the International Small-Cap Markets

S&P Dow Jones Indices recently launched the S&P Global SmallCap Select Index Series.  These indices aim to provide broad market exposure to small-cap equities around the world that have a track record of generating positive earnings. As prior S&P DJI research highlighted, the S&P SmallCap 600® outperformed the Russell 2000 by around 2% on an Read more […]

2018 SPIVA® Scorecard: Volatility Does Not Help Active Performance

Contrary to the myth that active managers tend to fare better than their benchmarks during volatile markets, 68.83% of domestic equity funds lagged the S&P Composite 1500® during the one-year period ending Dec. 31, 2018, making 2018 the fourth-worst year for active U.S. equity managers since 2001 (see Exhibit 1). Evidence from the SPIVA U.S. Read more […]

Quantifying Fee Drag on Investment Returns

The impact of fees on investment returns is a widely studied and much debated topic. Over the past decade, as index-linked, lower-cost passive investing has taken hold, fees have become a greater focus. In recent years, there have been several studies published examining the impact of fees on performance. The U.K’s Financial Conduct Authority (FCA), Read more […]

SPIVA® U.S. Mid-Year 2018 Summary

The latest results from the SPIVA U.S. Mid-Year 2018 Scorecard show improvement in the relative performance of actively managed domestic equity funds against their respective benchmarks. During the one-year period ending June 30, 2018, the overall percentage of all domestic funds outperforming the S&P Composite 1500® increased to 42.02%, compared with six months prior (36.57%). Read more […]

Adding the “Factor Flavour” to Indexing

Many people believe that index-based investing and market beta are synonymous. With the growing popularity of index-based investing, exchange-traded funds and index funds based on market benchmarks such as the S&P BSE SENSEX, S&P BSE 100, and S&P BSE 500 are slowly gaining ground. Investors have been familiarizing themselves with market returns linked to these Read more […]

Beyond the SPIVA® Europe Mid-Year 2018 Headlines – Delving Deeper Into the Data

The S&P Indices Versus Active (SPIVA) Europe Mid-Year 2018 Scorecard is often cited for its latest headlines surrounding the active vs. passive debate. But beyond the SPIVA headlines, there is an extensive offering of insightful data that has been carefully measured and presented to help readers dig deeper. Let’s look at just one example from Read more […]

Index-Based Investing: A Simple Solution

Making a suitable investment decision among multiple options has always been a dilemma. Market-linked investment options have generally resulted in apprehensive views from conservative investors who sense that equity markets bear heavy risks. Retail investors who lack an understanding of the markets are at risk, as bull runs tend to promote participation. Index-based investing can Read more […]

SPIVA® Latin America Mid-Year 2018 Results

Last week, the SPIVA Latin America Mid-Year 2018 Scorecard was released. The scorecard tracks the performance of active mutual funds in Brazil, Chile, and Mexico through the end of June 2018. Exhibit 1 shows how managers fared against their respective category benchmarks for one-, three-, and five-year lookback periods. In the short- and long-term periods, Read more […]