Broadly speaking, there are three types of funds to invest in.

 

Actively managed funds aim to beat the market, or, as it’s known in the fund industry, to generate alpha. They do this mainly through security selection, but also through market timing. 

 

Passively managed funds aim to capture the market return, or market beta, by tracking an index like the S&P 500, the FTSE All-Share or the MSCI World index.

 

Systematic, or rules-based, funds are similar to passive funds but target specific factors, like value, size or momentum, which have outperformed the broader market in the past.

 

Historically, most investors used active funds. In recent decades, however, passive and systematic funds have become increasingly popular.

 

The idea behind active management is simple: with enough skill, you can beat the market. But for decades, this belief has been hotly debated — and the implications are significant. Should investors rely on stock-picking managers, or opt for passive or systematic funds instead? Should they really be chasing alpha at all?

 

Enter SPIVA.

 

What is SPIVA?

 

SPIVA, short for S&P Indices Versus Active, is a long-running scorecard published by S&P Dow Jones Indices. It compares how active funds perform against relevant S&P benchmarks around the globe — from the US and UK to India, South Africa and beyond.

 

What it shows

 

Time and again, SPIVA reveals a tough truth: most active funds underperform their benchmarks, both in the short and the long run. And even when some managers beat the benchmark in one period, very few manage to stay on top in the next.

 

The persistence problem

 

We often hear about active funds which have outperformed over a short period of time. But true investment skill is about consistency — delivering strong results over and over again. SPIVA’s Persistence Scorecards show that very few active managers can keep outperforming.

 

Why SPIVA stands out

 

SPIVA’s process built on solid principles:

 

No survivorship bias: Many studies ignore funds that disappeared during the period. SPIVA includes them, giving a more honest picture of the entire market.

 

Asset-weighted returns: SPIVA doesn’t treat all funds equally. Bigger funds carry more weight, just like they do in the real world.

 

Like-for-like comparisons: It matches funds to the right benchmarks based on their style and category, so there are no unfair comparisons.

 

Style consistency checks: SPIVA also tracks how well funds stick to their stated investment approach, which matters for asset allocation.

 

The latest SPIVA reports

 

Here are the latest SPIVA reports for different countries and regions: