Money WondersPlay

Funds & IndicesActive Management

Most Pros Beat the Market

Over 15 years, most US stock funds trailed the S&P 500

Professionals with research teams pick stocks for a living. Over 15 years, how many would you guess beat a simple list?

You'll find out

  • How many pros beat the index
  • Where half the funds went
  • The arithmetic every fund faces

Why it matters

Much of what's sold as expertise is measured against an index. The scorecard is public, and it's sobering.

About 3 min6 interactive slides · 5 questionsLesson 105 · Zone 12

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More in this zone

  1. 100FundsA Basket Instead of One EggA fund holds many investments at once
  2. 101IndicesWhat an Index IsA list that stands in for the whole market
  3. 102IndicesThe Dow Started With 12Only one original member lasted into this century
  4. 103FundsActive and Passive FundsPicking stocks or buying the whole list
  5. 104FeesWhat 1% Costs Over a LifetimeA small fee can take a big slice of the result
  6. 106SimplicityBuffett's Million-Dollar BetA plain index fund beat a hand-picked set of hedge funds over ten years
  7. 107FundsETFs and Mutual FundsTwo wrappers for the same basket
  8. 108Investor BehaviorDoing Nothing Is HardPeople who traded the most earned the least