Welcome to the new my.morningstar.com! Learn more about the changes and how our new features help your investing success.

U.S. Active Managers’ Success Rates Spiked Higher in 2017

U.S. stock-pickers’ success rate increased in 2017, but have generally underperformed their passive counterparts, especially over longer time horizons, and experienced higher mortality rates.

Ben Johnson 03.05.2018

We recently published the year-end 2017 installment of the Morningstar Active/Passive Barometer report. The report measures the performance of U.S. active managers against their passive peers within their respective Morningstar Categories, uniquely evaluating active managers’ success relative to the actual, net-of-fee performance of competing passive funds rather than an index.

The key findings from the year-end 2017 report were largely in line with what we’ve seen in prior install­ments. Specifically, we found that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons, and experienced higher mortality rates.

Compared with the year-end 2016 report, active funds’ trailing one-year success rates improved materially. U.S. stock-pickers’ success rate increased sharply in 2017, as 43% of active managers categorized in one of the nine segments of the U.S. Morningstar Style Box both survived and outperformed their average passive peer. In 2016, just 26% of active managers achieved this feat.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Member.

Register For Free

About Author

Ben Johnson  Ben Johnson, CFA is the Director of Passive Fund Research with Morningstar.

Audience Confirmation


By clicking "accept" I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See "Cookie Consent" for more detail.

  • Other Morningstar Websites
© Copyright 2021 Morningstar, Inc. All Rights Reserved.      Terms of Useund      Privacy Policy.
© Copyright 2021 Morningstar Asia Ltd. All rights reserved.

Terms of Use        Privacy Policy        Cookies