88% of professional fund managers may be outperformed by a simple S&P 500 index fund strategy.

88% of professional fund managers may be outperformed by using a simple investment strategy. Buying an S&P 500 index fund, such as the Vanguard S&P 500 ETF, can offer better long-term returns than most actively-managed mutual funds. Warren Buffett bet on this strategy, expecting it to beat any hedge fund manager over 10 years. S&P Global's SPIVA scorecards support this idea, showing that most active large-cap funds can't beat a simple index fund.

June 29, 2024
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