Index Funds vs Mutual Funds: The 2% Reality That Banks Don't Tell You

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Index Funds vs Active Funds: 98% Lost to Their Index

S&P Dow Jones Indices runs the scorecard on its own benchmarks, and the year-end 2025 numbers for Europe are not close: over ten years, 98.44% of euro-denominated global equity funds underperformed the S&P World. Adjust for risk and it is 99.17%. The reason is not that fund managers are stupid — it is that fees are certain, outperformance is not, and a large share of active funds are quietly tracking the index anyway while charging as though they are not. The question is therefore never 'is this manager good'. It is 'is this manager doing anything an index fund isn't — and am I paying accordingly'.

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