The SPIVA Scorecard Does Not Capture the Actual Experience of Investors

The Scorecard considers any active fund exiting the sample early — as a large percentage of funds do over a 15-year or 20-year period — as having underperformed. That assumption of underperformance if exiting is made regardless of a fund’s actual performance. Funds often shut down after poor performance, but some funds exit for other reasons — such as mergers — after outperforming for years.