By definition, index funds seek market returns. Costs push them slightly under but still ahead of active management (in the aggregate) on account of lower costs. This chart, however, is getting at something different — how rare it is for active management to outperform. A related issue is the lack of persistence by active managers.
Above the Market 
Meanwhile, index funds always perform below the market…
By definition, index funds seek market returns. Costs push them slightly under but still ahead of active management (in the aggregate) on account of lower costs. This chart, however, is getting at something different — how rare it is for active management to outperform. A related issue is the lack of persistence by active managers.
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