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Passives win again as stock pickers ‘not up to the task’ of beating Covid-ravaged markets

Research from the most recent S&P Indices vs Active Report reveals most funds in the US have failed to perform despite what have been arguably near perfect conditions

Passives win again as stock pickers ‘not up to the task’ of beating Covid-ravaged markets
Photo: Getty Images

The past six months should have provided stock pickers the chance to showcase their ability to outperform and justify the high fees they charge investors. But new research shows they have wasted the opportunity.

Fund managers whose job it is to beat benchmarks and provide superior returns compared to rival index funds have had ample time to prove their worth, following the brutal market sell-off that was prompted by the onset of Covid-19.

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