Actively managed equity strategies of all shapes and sizes have been underperforming in the long term not solely due to the COVID-19 pandemic, an S&P report said.
The S&P 500 index finished the quarter at -19.6%, its worst quarter since 2008's global financial crisis, according to the report.
And the underperformance of U.S. equities can't solely be blamed on the coronavirus pandemic. As measured by the S&P Composite 1500, in addition to 64% of domestic equity strategies underperforming in the first four months of 2020, 67% underperformed in the past two quarters.
"Active managers sometimes seek to soften the conclusions of our regular ... reports by arguing that, while index funds may have the advantage in rising markets, it's in volatile downturns that active management can prove its worth," wrote Berlinda Liu, director of global research and design at S&P Dow Jones Indices and author of the report. "Historical data argue otherwise, and most active managers continued to underperform in 2020."