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.
Year-End 2024 Highlights
In 2024, few of Canada’s active funds surpassed levels set by rising global markets. Across categories, an average of over 80.0% of active funds underperformed their benchmarks, including Canadian Equity funds at 88.7%, Canadian Focused Equity funds at 80.0% and Dividend & Income Equity funds at 95.8% (see Exhibit 1 and Report 1). International Equity funds posted the lowest full-year underperformance, with 71.6% lagging the benchmark. Underperformance rates generally increased with time horizons
- Canadian Equity Funds: The S&P/TSX Composite Index climbed 21.7% in 2024, while Canadian Equity funds gained 17.8% and 17.7% on equal- and asset-weighted bases, respectively. Underperformance rates hit 88.7% over the one-year period, climbing to 89.9%, 92.5% and 95.5% over the 3-, 5- and 10-year horizons, respectively.
- Canadian Focused Equity Funds: The blended benchmark of 50% S&P/TSX Composite Index + 25% S&P 500® + 25% S&P EPAC LargeMidCap increased 23.0% in 2024, outperforming 80.0% of Canadian Focused Equity funds. Underperformance rates were 83.8%, 85.7% and 100.0% over the 3-, 5- and 10-year horizons, respectively.
- Canadian Dividend & Income Equity Funds: The S&P/TSX Canadian Dividend Aristocrats® Index rose 20.9% during 2024, while Canadian Dividend & Income Equity funds gained 15.4% and 16.6% on equal- and asset-weighted bases, respectively. Underperformance rates hit 95.8% over the one-year period and reached 92.6%, 85.0% and 88.1% over the 3-, 5- and 10-year horizons, respectively.
- Canadian Small-/Mid-Cap Equity Funds: The S&P/TSX Completion Index gained 24.3% in 2024, and 87.5% of Canadian Small-/Mid-Cap Equity funds underperformed the index. Funds in this category gained 17.6% and 17.4% on equal- and asset-weighted bases, respectively, over the one-year period.
- U.S. Equity Funds: The S&P 500 increased 36.4% in 2024, and 85.0% of U.S. Equity funds underperformed the index. Few funds in the U.S. Equity category outperformed over the long term, with 96.7%, 94.6% and 95.6% underperforming over 3-, 5- and 10-year horizons, respectively.
- International Equity Funds: 71.6% of International Equity funds lagged the S&P EPAC LargeMidCap in 2024, and 86.7%, 92.6% and 92.9% underperformed over the 3-, 5- and 10-year periods, respectively.
- Global Equity Funds: The S&P World Index rose 30.3% in 2024 and Global Equity funds gained 21.0% and 20.7% on equal- and asset-weighted bases, respectively. Over the one-year period, 90.4% of funds in the category trailed the benchmark. Over the 3-, 5- and 10-year periods, 96.6%, 96.3% and 98.2% of funds underperformed, respectively.
- Fund Survivorship: Liquidation rates for all categories were in the single digits for the one-year period ending Dec. 31, 2024. Over the 10-year period, 47.2% of Canadian Equity funds merged or liquidated, and an average of 38.9% of funds disappeared across all categories (see Report 2).
