Think you can outsmart the market? Spoiler alert: even the pros rarely do.

Answer:

7%

92.89% of actively managed large-cap funds underperformed the S&P 500 over the 20 years ending December 31, 2025. The remaining 7% matched or beat it.

Questions:

• Why do you think investing professionals struggle to "beat the market?"
• Why do you think investors still invest their money with professionals despite their record?
• Your friend says "you are better off investing with professionals instead of buying a simple index fund (e.g., S&P 500) that matches the market return." Do you agree or disagree?

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the Numbers: (SPIVA)

In 2025 alone, S&P Dow Jones Indices found that "79% of all active large-cap U.S. equity funds underperformed the S&P 500, worse than the 65% rate observed in 2024 and the fourth-worst year for active large-cap managers over the 25-year history of our SPIVA Scorecards." The longer the time horizon, the harder it gets: 85.59% of active large-cap funds underperformed over 10 years, 89.93% over 15 years, and 92.89% over 20 years.

Teach students about index funds with the most popular game in the NGPF Arcade, STAX.

About the Author

Dave Martin

Dave joins NGPF with 15 years of teaching experience in math and computer science. After joining the New York City Teaching Fellows program and earning a Master's degree in Education from Pace University, his teaching career has taken him to New York, New Jersey and a summer in the north of Ghana. Dave firmly believes that financial literacy is vital to creating well-rounded students that are prepared for a complex and highly competitive world. During what free time two young daughters will allow, Dave enjoys video games, Dungeons & Dragons, cooking, gardening, and taking naps.