An S&P press release said the S&P SmallCap
600 outperformed 50.8% of small-cap funds, however,
actively managed mid-cap funds beat out the S&P
MidCap 400 during the third quarter, with 69.4% of them
posting better results.
SPIVA results give a similar picture for year-to-date activity through September. According to the release indices lead actively managed large-cap and small-cap funds, with the S&P 500 outperforming 71.5% of large-cap funds, and the S&P SmallCap 600 outperforming 65.9% of small-cap funds. Meanwhile, 54.1% of active mid-cap funds have outperformed the S&P MidCap 400 for the year-to-date period.
“Through September, the S&P 500 has returned 8.52% with 66% of the return occurring during the third quarter,” said Rosanne Pane, Mutual Fund Strategist at Standard & Poor’s, in the release. “Sector rotation during the third quarter drove returns, which made it difficult for active managers following long-term investment strategies to successfully capture all of the sector moves,” she explained.
A majority of actively managed funds have lagged behind the indices for years. Past three-year and five-year data shows the S&P 500 beat out 68.1% (three-year) and 71% (five-year) of large-cap funds, the S&P MidCap 400 outperformed 66.9% and 83.6% of mid-cap funds, and the S&P SmallCap 600 outpaced 81.1% and 80.5% of small-cap funds, in the three-year and five-year periods, respectively.
As for international equities, year-to-date, indices continue to lead actively managed international funds. The S&P/Citigroup PMI World Index has outperformed 74.0% of actively managed global funds, in the year-to-date period. Meanwhile, the S&P/Citigroup PMI World ex U.S. has outpaced 64.9% of international funds, and the S&P/Citigroup EMI World ex U.S. has led 73.5% of international small company funds, according to SPIVA results.The S&P/IFCI Composite also has outperformed 77.9% of actively managed emerging markets funds. International indices lead actively managed funds over three- and five-year periods as well.
Finally, S&P reports that year-to-date, seven of eight domestic taxable fixed income indices have outpaced active funds, with short-term general funds being the only exception. The majority of global fixed income funds beat their benchmarks in two of three global fixed income styles.
The complete third quarter SPIVA scorecard and previous quarterly SPIVA reports are available at www.spiva.standardandpoors.com .
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