Since 1994, DALBAR’s Quantitative Analysis of Investor Behavior (QAIB) has measured the effects of investor decisions to buy, sell and switch into and out of mutual funds over short and long-term timeframes, and since it's inception, the study has found that investors are consistently underperforming the broader market.
Does Passive Investing Have A Cap Of Market Cap?
According to the latest report, 2017 was no different. Even though the S&P 500 gained 21.86% last year, according to DALBAR, the average equity fund investor only saw a return of 20.64%, an underperformance of 1.19%. The average equity fund investor outperformed through 2017 until October, but during the final months of the year, performance deteriorated significantly.
