Only about one-third, 35%, of active U.S. large-cap equity mutual funds and exchange-traded funds outperformed the S&P 500 index in 2024, according to the S&P Dow Jones Indices’ SPIVA U.S. Scorecard. In 21 out of the last 24 years, less than 50% of the funds bested the index.
The last time more than half of the funds had higher returns than the index occurred in 2009 when 52% did so.
Just 21% of all U.S. active equity funds had better returns than the S&P Composite 1500 last year. Less than half the funds outperformed the benchmark in 16 out of the last 23 years.
There were 53 out of 83 pension plans that had 50% or less of their U.S. equity assets invested actively, based on pension plan responses to Pensions & Investments’ annual top 1,000 retirement plan sponsor survey. Nine plans had none of their equity investments in active strategies.
