Active vs passive investing: Why one statistic doesn't settle the debate

OpinionOpinion byGreg SmithNZ Herald·8 Sep, 2026 05:00 PM9 mins to readGreg Smith is an investment specialist at GenerateStudies question whether both active and passive fund managers are being measured by the right benchmark. As it stands, both groups tend to miss their target. Photo / 123rfAround 80% of active fund managers fail to beat their benchmark. It’s one of the most quoted numbers in investing, and it’s usually wheeled out as though it ends the conversation.It doesn’t.

The number often emanates from SPIVA, S&P Indices Versus Active, a scorecard S&P Dow Jones Indices has