“The higher fees typically charged by actively managed companies may be part of the reason that so many funds underperformed, although other factors may also have been at play,” he says in a note dated Jan 11 this year.
On Jan 29, the world’s longest-surviving exchange-traded fund — initially known as the Standard & Poor’s Depository Receipt (SPDR) — celebrated 30 years since it began trading. It is now among the largest funds in the world and, on some days, the most heavily traded security anywhere, says Tim Edwards, managing director of index investment strategy at S&P Dow Jones Indices.
Based on data compiled by S&P Dow Jones Indices between Jan 29, 1993, and Sept 30, 2022, just 2% of actively managed Large-Cap Core funds beat the S&P 500. Edwards attributes this at least partially to fees.
