Oct. 21, 2004 — Benchmark indices are outperforming actively managed funds in most U.S. equity styles year-to-date through September, and in the third quarter itself, according to research from Standard & Poor's Indices Versus Active Funds Scorecard (SPIVA).
The data shows the S&P 500 Index is ahead of 62.6% of large-cap funds through the end of September, while the S&P MidCap 400 Index is in front of 57.7% of mid-cap funds, and the S&P SmallCap 600 is outpacing 84.4% of small-cap funds
For the third quarter of 2004, the S&P 500 outperformed 58.6% of large-cap funds, the S&P MidCap 400 Index outpaced 58.0% of mid-cap funds, and the S&P SmallCap 600 Index has beaten 69.5% of small-cap funds.
"A majority of active funds have underperformed benchmarks in this year's trendless market," notes Srikant Dash, Index Strategist at Standard & Poor's. "Results of the first nine months of this year are in contrast to that of 2003, where a majority of active funds outperformed indices in six investment styles."
The average mutual fund returned slightly more than 1% for 2004, noted Rosanne Pane, Mutual Fund Strategist at Standard & Poor's. "Market returns have been subdued this year by concerns over rising oil prices, the geopolitical environment and mixed economic results," she said. "In addition, growth opportunities have been difficult to find."
