Problem:
Investment Professionals Don’t Have Access to
Reliable and Profitable Research
![NYT](https://invest.ers.ai/wp-content/uploads/2024/02/NYT-1.png)
April 14, 2023
The vast majority of active fund managers just can’t beat the indexes over 10- or 20-year periods, or in most individual years, either. Consider these tallies for funds that invest in S&P 500 stocks through the end of 2022:
- Over three years, 74.3 percent of actively managed funds trailed the index.
- Over five years, 86.5 percent underperformed.
- Over 10 years, 91.4 percent underperformed.
- Over 20 years, 94.8 percent underperformed.
As the numbers show, the longer you ran the horse race, the more actively managed funds fell.
![NYT](https://invest.ers.ai/wp-content/uploads/2024/02/NYT-1.png)
February 16, 2024
Since 2001, most active managers haven’t made the right calls. A long-running and detailed study of fund performance by S&P Dow Jones Indices shows that active managers haven’t beaten the market:
- 93 percent of the time over 20 years.
- 90 percent of the time over 10 years.
- 73 percent of the time over five years.
- 72 percent of the time over one year.
Even when individual fund managers have beaten the indexes, they have rarely done so repeatedly and consistently. In June 2022, for example, not a single fund had finished in the top quarter of actively managed funds every year for five consecutive years.
Investors spend over $500 billion annually on investment research and advice.
But 90% of advisors fail to beat the market long-term.