Passively managed

Passively managed funds consistently outperform actively managed funds. More than three-quarters of active mutual fund managers are falling behind the S&P 500 and the Dow Jones Industrial Average. The S&P Indices versus Active (SPIVA) scorecard, which tracks the performance of actively managed funds against their respective category benchmarks, showed that 79% of fund managers underperformed the S&P in 2021. It reflects an 86% jump over the past 10 years. In general, actively managed funds have failed to survive and beat their benchmarks, especially over longer time horizons; only 25% of all active funds topped the average of their passive rivals over the 10-year period ended June 2021. Investors, academicians, and authors such as Warren Buffett, John C. Bogle, Jack Brennan, Paul Samuelson, Burton Malkiel, David Swensen, Benjamin Graham, Gene Fama, William J. Bernstein, and Andrew Tobias have long been strong proponents of passive investing.