Portfolio Managers Rarely Beat This Simple Strategy. The Data Keeps Proving It.

So far in 2026, active fund managers are having one of their best years in nearly two decades. Goldman Sachs says that 57% of large-cap active mutual fund managers are beating their benchmarks, far above the long-term average. Unfortunately, that's only one year. The long-term data shows that active managers have a pretty miserable record of staying ahead of their benchmarks. Over the past 10 years ending in 2024, 84% of large-cap active mutual funds lagged their benchmarks. This is the core reason why investment in index funds has surged over the past couple of decades. After years of paying high fees for underperformance, investors figured out that buying an ultra-low-fee index exchange traded fund (ETF) and simply matching the index instead of trying to beat it is a great idea. Today, the largest ETFs, including the Vanguard S&P 500 ETF and the iShares Core S&P 500 ETF, manage hundreds of billions of dollars and often have expense ratios of 0.05% or less.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool