Passive vs. Active Investing: 20 Years of Data

The SPIVA reports consistently show that the majority of active professional managers fail to beat the index over long terms.

Survivorship Bias

Many poorly performing active funds are simply closed or merged, making the remaining funds look better than the average.

The Expense Ratio Gap

The 1% difference in fees between a typical active fund and an index fund adds up to hundreds of thousands of dollars over a career.

Simplicity and Tax Efficiency

Index funds have much lower turnover, meaning fewer capital gains distributions and lower taxes for you.