As per the report, the median returns reported by strategists in five of the nine equity and fixed-income categories classified by Morningstar have underperformed their respective benchmarks in the one-, three- and five-year periods ending in last year’s fourth quarter. That includes the global all-asset category, which controls roughly 30 percent of all assets in ETF managed portfolios. In addition, median returns in the global and U.S. equity categories have also consistently missed the mark.
Fixed-income strategies—both global and U.S.—have fared better during the past five years, according to Morningstar’s report.