Posted by Tim Stobbs on June 26, 2008
The Globe and Mail had a great little article about the performance of active fund in the first quarter compared to their benchmark indexes. Guess how many actively managed funds managed to out preform their benchmark indexes? 30%, no. 20%, no. You can’t mean 10%, no.
Drum roll please. Only 8.2% of active funds beat their benchmark indexes. So that means 91.8% of all active funds can’t keep up to their indexes in Q1. Wow! I know active management sucked, but this is insane that most of them sucked a lot in Q1.
So there you go a compelling reason on why active management isn’t worth the fees. Buy index funds or better yet EFT’s and sleep easy knowing you are beating over 90% of the professionals out there. Damn, I wish it was only so easy to be that good at some other things in life.