S&P 500 Beat 63% of Large-Cap Funds Over Past Five Years

Standard and Poor’s released the findings of its mid-year 2009 Standard & Poor’s Index Versus Active Fund Scorecard (SPIVA), showing that for the past five years through June 30, the S&P 500 beat 63% of actively managed large-cap funds.

The S&P MidCap 400 outperformed 73% of mid-cap funds, and the S&P SmallCap 600 outperformed 57% of small-cap funds.

However, S&P admitted, asset-weighted averages suggest that a majority of active managers were level with or beat their benchmarks.

“Our latest five-year data for equity funds can be interpreted favorably by proponents of both active and passive management,” said Srikant Dash, global head of research and design at S&P and author of the report.

However, the five-year data is unequivocal for fixed income funds; across all categories, except emerging market debt, more than 75% of active managers failed to beat their benchmarks. In addition, five-year asset-weighted average returns are lower for active funds in all but two categories.

For reprint and licensing requests for this article, click here.
Mutual funds Money Management Executive
MORE FROM FINANCIAL PLANNING