3 Ways Active Managers May Defy the Laws of SPIVA

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

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.