“The returns of 66.23% of mid-cap managers and 72.92% of small-cap managers lagged those of the S&P MidCap 400 and the S&P SmallCap 600, respectively, on a one-year basis. Similar to the results in the large-cap space, the overwhelming majority of mid- and small-cap fund managers underperformed their benchmarks over the longer-term horizons as well,” according to the recent SPIVA scorecard from S&P Dow Jones. [Another Bad Year for Active Management]
Over the past 10 years, over 88% of active small-cap managers attempting to beat the S&P SmallCap 600 Index have failed to do so, according to S&P data.
Russell 2000 Weekly Chart
Chart Courtesy: Kimble Charting Solutions
Tom Lydon’s clients own shares of IWM.