Frightful Funds
03/15/2021 |
In 2020, 60% of US large-cap stock-picking mutual funds lagged the unmanaged S&P 500. Regrettably, this underperformance isn’t new. 2020 was the 11th straight year a majority of actively managed funds underperformed the index. Of all large-cap actively managed funds that were in business two decades ago, only 6% remain and have beaten the S&P 500 over the twenty-year period. What exactly are managed funds doing to earn their fees?