Active Underperforms Passive on Risk-Adjusted Basis

A recent article in Advisor Perspectives outlines new research findings showing that actively managed funds underperform their benchmarks on a risk-adjusted as well as an absolute basis, and the findings hold true across asset classes and sub-classes. The article outlines a summary of the 2019 report: Over the past five-, 10-, and 15-year periods: 84%, 97%, and 92% of actively managed large-cap funds have underperformed their benchmarks. 65%, 80%, and 86% of actively managed mid-cap… Read More