The case for active management when so few outperform the S&P 500

> According to Morningstar, of the thousands of actively managed U.S. large-cap blend stock funds, an embarrassingly small number of them (27%) outperformed the S&P 500 index in 2025.

It’s much much worse than that for actively managed funds. You can’t predict which fund will outperform an S&P 500 index fund for the coming year. And a fund that outperforms it in one year has zero reliability in outperforming it over 3, 5, or 10 years.

If you’re going to invest in equities, an index fund in something like the S&P 500 will always be superior.