Fund ExplorerIndicesInsightsVideosPricing

What´s Better than the S&P 500?

A review of core equity funds

Nicolas Rabener
10 min read
7 Oct 2024

SUMMARY

  • Only 23.7% of U.S. core equity funds have generated a higher Sharpe ratio than the S&P 500
  • Some of these are cheaper, others represent bets on factors like quality
  • Some have long track records that may indicate manager skill

INTRODUCTION

The SPIVA U.S. Scorecard Year-End 2023 highlights that 88% of large-cap U.S. active mutual funds have underperformed the S&P 500 in the 15 years ending December 2023, which is a depressing fact for active fund managers. Worse, there is also no consistency in returns, i.e. the 12% of funds that have outperformed are not likely to do so again.

Keep reading with Institutional

Includes the full research library of 400+ articles, plus Returns Analyzer and Risk Analytics for return and risk contribution analysis.