🤔 Is Passive still the default choice for investing in US large Cap equity funds ?

9 March 2021

So far in 2021 (from 31 Dec 20 to 12 Feb 21), the start of the year is very good for US equity large-cap active managers with 61% of them outperforming their passive counterparts.

This follows a good year for active managers in 2020 where 41% of active managers outperformed passive funds vs 24 % over the long term. The 1-year outperformance spread also reached a record at 3.4% in 2020 vs 1.1% on average over the long term. And since the beginning of the year, it has continued increasing to reach the record level of 4.5% as of Feb 12th.

Data confirm the fact that following the Covid 19 crisis and the change of US president, more opportunities arise in the US equity market for active managers.

👉 For most investors, passive is the default choice for the US equity market. Shouldn’t these data help to demonstrate the need to stop being evangelical on the choice of the investment vehicle?

Using reliable and up-to-date data is key to make the most efficient decision when selecting active and passive funds which is crucial to optimize portfolio performance. 🎯

Marlene Hassine Konqui