Average Equity Investor Lagged S&P 500 By 2% In First Half, Dalbar Finds

August 25, 2021 • Page 2 of 2

In contrast to the average equity fund investor, who was beat by an index, the average fixed-income fund investor outperformed the Bloomberg Fixed Income Index by 93 basis points, Dalbar found.

Last year, Dalbar found that investors mitigated their losses during the volatility that followed the emergence of the pandemic in 2020. For the year 2020, the investor gap for equity investors was 1.11% (17.29% for the average equity fund investor and 18.40% for the S&P 500).

While this was material underperformance, it was not alarming based on historical comparisons, Dalbar reported. However, equity fund investors did divest during 2020 and continued to do so into 2021, which caught up to them, the firm said.

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3 Comments

Comments

ritzy1 2 years ago

It would seem pretty straightforward that if your investment does worse than the index then you're doing a poor job of investing. Certainly that's one measure. That's not your understanding, Chief? Do you expect lower than index return in your investing?? You must not be a regular FA reader--the quality of articles here vary significantly, no matter what the magazine is called. This article is merely one data point, CYA. If that's the conclusion that serves you well then by all means.... :)
ChiefE 2 years ago

These articles take nothing into consideration except return. And the return based on the S&P. One would think that if you're investment does not beat the return of the index you are doing a poor job of investing money. I'd expect this from CNBC or Bloomberg, but not from a magazine called Financial Advisor. Whatever.
CYA 2 years ago

So the average investor should stay 100% equity if the S&P 500 is the benchmark? Let me go reposition everything!

Average Equity Investor Lagged S&P 500 By 2% In First Half, Dalbar Finds

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