3 Ways Active Managers May Defy the Laws of SPIVA

3 Ways Active Managers May Defy the Laws of SPIVA

Does the data tell the full story of the active/passive debate?

Reviewed by: Lisa Barr
Edited by: Lisa Barr

LONDON − S&P Dow Jones Indices’ SPIVA has become the self-proclaimed “de facto scorekeeper of the active versus passive debate” but regularly leaves active managers’ eyes in a permanent rolling state by underlining the conclusion that resisting the power of passive is a futile business.

Last year’s SPIVA Europe Scorecard painted a grim picture for the long-term effectiveness of active management, finding 95% of US equity funds, 75% of Europe equity funds and 62% of Europe equity funds were beaten by corresponding S&P DJI benchmarks over the trailing 10-year period.

This article first appeared in ETF Insider, ETF Stream's monthly ETF magazine for professional investors in Europe. To read the full article, click here.

Jamie started at ETF Stream as a reporter in January 2021. Previously, he was a senior journalist at the UK Investor Magazine, Investment Observer, UK Startup Magazine and UK Property Journal. He holds an undergraduate degree in politics and international relations, and a postgraduate degree in ethics.