This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Stock Pickers Are Struggling to Beat the Market
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > Stock Pickers Are Struggling to Beat the Market
Markets

Stock Pickers Are Struggling to Beat the Market

Editorial Board Published December 28, 2021
Share
Stock Pickers Are Struggling to Beat the Market
SHARE

It was supposed to be a stock picker’s market.

A late 2020 rally by smaller and cheaper stocks, culminating with the meme-stock craze that started in January, raised hopes that active investing would stage a comeback this year. But as 2021 draws to a close, most professional stock pickers find themselves in familiar territory: trailing the benchmark S&P 500 index.

That many money managers were brimming with optimism in January is nothing new, said Craig Lazzara, a managing director at S&P Dow Jones Indices. “Every year, there are a bunch of forecasts typically from active managers describing why this year is going to be a good year—this will be a stock picker’s market,” Mr. Lazzara said.

But many active stock funds struggle to beat the market in a given year, and 2021 fits the pattern. Some 85% of active U.S. stock funds were on pace to underperform the S&P 500 this year as of Nov. 30, according to Morningstar Direct. In the same period a year ago, 64% of such funds were running behind the S&P 500, according to Morningstar.

Some of those funds focus on small or midsize companies, and many were on track to beat the benchmark indexes that more closely resemble their investment style, said Robby Greengold, a Morningstar strategist. Small-cap funds, in particular, have had a strong year relative to their benchmarks.

Keeping pace with the S&P 500, though, was a different matter.

“Large-cap stocks this year have generally trounced the small-caps,” Mr. Greengold said.


Newsletter Sign-up

Markets

A pre-markets primer packed with news, trends and ideas. Plus, up-to-the-minute market data.


Active managers had reason to believe this year might be different. Indeed, the U.S. economy’s recovery from the coronavirus slowdown had emboldened investors to snap up stocks they had previously ignored, Mr. Lazzara said. They went looking for bargains, reasoning that most companies would benefit from the economy’s growth—and not just the ones that proved most resilient earlier in the year.

Cheap stocks, small-caps and energy companies—categories that lagged behind the S&P 500 at the start of the health crisis—vaulted past the index’s performance in fall 2020, according to S&P Dow Jones Indices.

Their moment didn’t last. By spring 2021, big growth stocks had found their footing and kept it—helping power the S&P 500 to a 28% gain so far this year. The S&P MidCap 400 is up 23%, while the S&P SmallCap 600 has risen 26%.

Write to Justin Baer at justin.baer@wsj.com

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the December 29, 2021, print edition as ‘Stock Pickers Struggle To Top S&P 500 Index.’

Contents
Newsletter Sign-upMarkets
TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article In 2021 Movies, Superheroes Triumph Over Will Smith In 2021 Movies, Superheroes Triumph Over Will Smith
Next Article Spider-Man Complicates Movie Theater Recovery Plot Spider-Man Complicates Movie Theater Recovery Plot

Editor's Pick

I attempted Google’s new Search Dwell function and ended up debating an AI about books

I attempted Google’s new Search Dwell function and ended up debating an AI about books

Google’s new Search Dwell function lets customers maintain real-time voice conversations with an AI-powered model of Search The Gemini-powered AI…

By Editorial Board 6 Min Read
AI at Scale: Mohammed’s Revolutionary Architecture Behind the World’s Fastest Website Builder
AI at Scale: Mohammed’s Revolutionary Architecture Behind the World’s Fastest Website Builder

In an extraordinary technological breakthrough, Abdul Muqtadir Mohammed has fundamentally transformed how…

7 Min Read
Bobby Flay Pays Tribute to Anne Burrell: She was Unforgettable…
Bobby Flay Pays Tribute to Anne Burrell: She was Unforgettable…

Studying Time: 3 minutes Bobby Flay is the newest movie star to…

5 Min Read

Oponion

Shoppers Find Discounts Are in Short Supply This Holiday Season

Shoppers Find Discounts Are in Short Supply This Holiday Season

One side effect of the Covid-19 pandemic heading into the…

October 25, 2021

Montana has its first measles instances in 35 years

Montana is the ninth U.S. state…

April 22, 2025

Mortgage charges drop to lowest price in additional than a yr

The low employment report added to…

September 16, 2024

UK wants ‘cool and clear-headed’ response to Trump tariffs on British metal, minister says | Politics Information

The UK wants a “cool and…

February 11, 2025

Jan. 6 Panel Subpoenas Reddit, Twitter and Parent Companies of Google and Facebook

The House select committee investigating the…

January 14, 2022

You Might Also Like

Oil costs anticipated to be impacted following US bombing of Iran nuclear websites
Markets

Oil costs anticipated to be impacted following US bombing of Iran nuclear websites

FOX Enterprise host Liz Claman breaks down the impression on the oil markets and customers amid escalating tensions within the…

4 Min Read
America headed for ‘financial coronary heart assault’ on authorities debt, spending warns billionaire
Markets

America headed for ‘financial coronary heart assault’ on authorities debt, spending warns billionaire

Bridgewater Associates founder Ray Dalio discusses responding to the U.S. debt on 'The Claman Countdown.' Billionaire Ray Dalio, founding father…

4 Min Read
Main oil worth shock looming as Israel-Iran battle threatens crucial world delivery passage
Markets

Main oil worth shock looming as Israel-Iran battle threatens crucial world delivery passage

ExxonMobil CEO Darren Woods describes the impact of the Center East battle on the worldwide oil market on 'Particular Report.'…

4 Min Read
ExxonMobil CEO talks oil provide amid Iran-Israel battle
Markets

ExxonMobil CEO talks oil provide amid Iran-Israel battle

ExxonMobil CEO Darren Woods describes the influence of the Center East battle on the worldwide oil market on 'Particular Report.'…

4 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?