Just 13% of U.S. large-cap funds have outperformed indexes over the past decade, new data show. The data, released by a research firm, tracked more than 200 actively managed large-cap mutual funds and ETFs listed on major U.S. exchanges. The benchmark used was the S&P 500 index, which represents the broader U.S. equity market.

The analysis covers a 10‑year period ending December 2023, allowing a long‑term comparison of returns against the index. The findings confirm that fund managers have struggled to consistently beat passive strategies, as only a small fraction of actively managed funds outperform the benchmark. The report also notes that the average annual return for the top decile of funds was only marginally higher than the index, while the median fund underperformed.

Investors and analysts can use this data to assess the value of active management for large‑cap portfolios, particularly when considering fees and tracking error. The study underscores the importance of fee considerations and tracking error when evaluating fund performance.