SPIVA Diva: Active Can Pick Stocks, Struggles with Weightings

The video discusses the performance of small and mid cap funds, highlighting their resilience compared to large caps. It examines the impact of 2018's volatility on active managers, noting significant underperformance. The discussion shifts to the challenges of stock picking versus portfolio construction, emphasizing the difficulty of beating the S&P 500. The video also explores active non-transparent funds, focusing on fees and performance. Finally, it addresses direct indexing and the role of technology in making it accessible to smaller investors.

What factors contributed to the better performance of mid-cap and small-cap active funds compared to large-cap funds?

How did the volatility in the fourth quarter of 2018 affect active managers across different market caps?

What are the two main ways active managers can outperform their benchmarks?

What is the significance of alternative weighting in portfolio construction?

Why is the S&P 500 considered a difficult benchmark for active managers to beat?

What role do fees play in the performance of active funds?

How does direct indexing differ from traditional ETF structures?