Since the first publication of the S&P Indices Versus Active Funds (SPIVA) U.S. Scorecard in 2002, S&P Dow Jones Indices has been the de facto scorekeeper of the ongoing active versus passive debate.
The SPIVA Canada Scorecard measures the performance of Canadian actively managed funds against their respective benchmarks over various time horizons, covering large-, mid- and small-cap segments, as well as international and global equity funds.
Mid-Year 2024 Highlights
Our SPIVA Global Scorecard illustrated difficult conditions for active managers around the world in the first half of 2024, particularly in equities. Canada was no exception. Funds in the Canadian Equity category underperformed at a rate of 66.7% over the first six months of 2024, rising to 93.4% over the 10-year period (see Exhibit 1 and Report 2). Canadian Small-/Mid-Cap Equity funds fared slightly worse, with 84.4% underperforming in H1 2024, and 75.0% failing to beat the benchmark over the 10-year period. Similarly, 85.0% of Canadian Focused Equity funds underperformed in H1 2024, while 98.2% trailed the benchmark over the 10-year period. Canadian Dividend & Income Equity funds had a brighter start to the year, with only 29.2% underperforming in H1 2024, but that rate rose to 86.6% for the 10-year period.
In addition to Canadian equity categories, this report presents SPIVA analyses of three categories of Canada-domiciled funds focused on non-Canadian stocks: U.S. Equity, Global Equity and International Equity. In the first six months of 2024, 75.0% of CAD-denominated U.S. Equity funds underperformed the S&P 500, with the underperformance rate rising to 96.9% over the 10-year period. Global Equity managers were even more challenged in the first half of 2024, with 82.1% underperforming, and a full 97.7% falling behind the benchmark over the 10-year period. Among International Equity funds, 73.0% underperformed in H1 2024, rising to 93.1% over the 10-year period ending in June 2024.
