A passive decade: Only 35% of active funds outperform tracker alternative over ten years

Due to US tech concentration

Just over a third (35%) of active equity funds have managed to beat the average passive alternative in their sector so far this year, down from 56% in 2021.

The 2024 figure is not unusual, with the previous decade reflecting an identical picture. Over the last ten years, just 35% of active equity funds recorded better results than their passive counterpart.  Adding to this active management woe, the 35% figure marked a drop from 2023's active outperformance reading of 36%. AJ Bell's Manager versus Machine report found that the weak active performance was partly driven by the dominance of global and US focused funds and their concentration on a small number of technology stocks.  Less than 40% of active equity managers beat average p...