Active Management Is Broken: SPIVA Shows Why Indexing Wins

Most investors are told to find a “great” active manager who can beat the market. The SPIVA report shows a very different reality. In this video, I break down the latest SPIVA (S&P Indices Versus Active) data and explain why the majority of active mutual funds and ETFs fail to outperform their benchmarks—especially over longer time horizons. We’ll look at how many active managers underperform after 1, 5, 10, and 15 years, and why the odds actually get worse the longer you stay invested in an active fund. You’ll see why survivorship bias, higher fees, trading costs, and style drift all stack the deck against active funds when compared to simple, low‑cost index strategies. I’ll also explain what makes the SPIVA scorecard so powerful: it is independent research from S&P Dow Jones Indices that compares active managers to appropriate benchmarks across U.S. and international markets, equities and bonds, and even adjusts for funds that were closed or merged away. The result is a clearer picture of how professional managers really perform versus the indexes they’re trying to beat. If you’re trying to decide between active funds and index funds for your portfolio, this episode will give you a data‑driven framework instead of sales pitches. We’ll connect what SPIVA shows to practical portfolio construction, risk management, and how long‑term investors can tilt the odds back in their favor using evidence‑based investing. As always, this video is for educational purposes only and is not individualized investment advice. For guidance tailored to your situation, speak with a qualified fiduciary advisor. I’m the founder of First Shelbourne, an investment advisory firm based in Commack, New York, focused on disciplined, value‑oriented, evidence‑based investing for individuals and families. If you’d like help applying these principles to your own plan, feel free to reach out through my firm’s contact details in the channel information. Website: https://www.firstshelbourne.com/