LSEG Lipper: Majority actively managed funds and ETFs didn't beat benchmarks

LSEG Lipper: Majority actively managed funds and ETFs didn't beat benchmarks

July 10, 2024

ETFs ESG Active & Passive Investing
ETF (01) actief passief

Majority of actively managed funds and ETFs globally were not able to beat their respective fund manager benchmarks. ESG-performance lower than conventional peers.

‘The majority of actively managed funds and ETFs globally were not able to beat their respective fund manager benchmarks between July 1, 2023, and June 30, 2024,’ LSEG Lipper concludes today. ‘The overall average relative performance of ESG-related equity funds versus their fund manager benchmarks (-4.90%) was lower than for their conventional peers (-3.19%). The overall average relative performance of ESG-related equity funds versus their assigned technical indicators by us (-4.90%) was also lower than for their conventional peers (-3.19%).’

‘For the evaluation of the relative performance of actively managed funds versus an index/benchmark, one needs to take fees and expenses into account since indices and benchmarks are calculated without taking any fees or expenses into consideration. The average total expense ratio (TER) of all equity funds covered by this report was 1.545%. While the TER for those funds which were compared against their respective fund manager benchmark was 1.480%,

With regard to the overall results of this study, it can be concluded that the equity markets are quite efficient, despite the fact that the majority of the assets under management are held by passive products.’

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