Indexing

The Triumph of Indexing

The following is a partial reproduction of Taylor’s post (52033):

Each quarter Standard & Poor’s publishes a “Standard & Poor’s Indices Versus Active Funds Scorecard” for domestic stock funds. For the first time Standard and Poor’s has also included comparative figures for international and fixed income funds vs. their benchmark indexes.

Here are five year results (the longest period shown):

PERCENTAGE OF EQUITY FUNDS OUTPERFORMED BY INDEX:
67% Large Cap
84% Mid Cap
79% Small Cap

PERCENTAGE OF INTERNATIONAL FUNDS OUTPERFORMED BY INDEX:
65% Global
80% International
88% Emerging Markets

PERCENTAGE OF FIXED INCOME FUNDS OUTPERFORMED BY INDEX:
75% Government Intermediate
84% Government Short
73% General Intermediate
88% General Short
84% High Yield
89% Mortgage-Backed Securities

The report is HERE.