SPIVA® U.S. Mid-Year 2020 Scorecard: Convergence to Underperformance

According to the SPIVA U.S. Mid-Year 2020 Scorecard, most active fund managers in the U.S. underperformed the market over the past year. Among actively managed domestic equity funds, 67% lagged the S&P Composite 1500® during the 12 months ending June 30, 2020, and the majority of active managers underperformed their benchmarks in 11 out of the 18 categories of domestic equity funds.

The past year was marked by performance divergence and extreme volatility. For example, while the majority of large-cap and multi-cap funds lagged their benchmarks, mid-cap and small-cap active funds performed better. Similarly, growth funds led across all capitalization segments in the one-year period, while value funds in general continued to lag their benchmarks over all time horizons (see Exhibit 1).

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