S&P Dow Jones data shows actively managed large-cap funds underperformed the S&P 500 in over 90% of cases over 15 years.
The Vanguard S&P 500 ETF (VOO) has outperformed more than 90% of actively managed large-cap funds over a 15-year period, according to recent data. The SPIVA U.S. Scorecard highlights that passive index funds consistently deliver better results due to lower fees and broad market exposure.
Actively managed funds typically charge fees exceeding 1%, which erodes returns over time. In contrast, VOO replicates the S&P 500 with a 0.03% expense ratio, providing cost-effective exposure to large-cap U.S. stocks. The trend reflects a broader shift toward passive investing as investors prioritize performance consistency.
The underperformance of active managers has accelerated the growth of ETFs, with many investors opting to match market returns rather than attempt to beat them. The data underscores the challenges of sustained outperformance in competitive markets.