Stock Pickers Trailed Market Again in Roller Coaster 2020

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WSJWhatsNow: Stock pickers came up short, again. 60% of U.S. large-cap stock-picking funds lagged behind the S&P 500 in 2020. karen_langley explains.

In 2020, 60% of U.S. large-cap stock-picking funds lagged behind the benchmark S&P 500, according to new data from S&P Dow Jones Indices.

Last year’s market tumult was unprecedented: As Covid-19 spread, the benchmark U.S. index lost a third of its value in less than five weeks in February and March, before leaping higher to set new highs in August and ending the year with double-digit gains.: 2020 was the 11th consecutive year in which a majority of actively managed U.S. large-cap funds underperformed the S&P 500, according to S&P Dow Jones Indices’ year-end scorecard on active management.

, which exert a powerful force on the S&P 500. The broad U.S. stock index’s 16% gain for the year was propelled by an 81% surge in shares of Apple Inc. and a 76% climb in shares of Amazon.com Inc.

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