87% of Canadian Equity Funds Underperformed S&P/TSX Composite in H1 2026
What happened
S&P Dow Jones Indices published a report stating that 87 per cent of actively managed Canadian equity funds underperformed the S&P/TSX Composite during the first six months of 2026. Active funds returned an average of 8.8 per cent, while the TSX Composite gained 11.2 per cent. The report also noted that rising dispersion between winning and losing stocks could increase downside risk for active funds.
From theglobeandmail.com
Why it matters
The underperformance rate was higher than the 81.8 per cent average recorded over the past 10 calendar years. The increasing gap between top and bottom performing stocks may create opportunities for stock selection, but it also suggests increased volatility and risk for active investment strategies.
From theglobeandmail.com
Who's involved
- S&PReleased the report detailing Canadian fund performance
- TMX GroupOperates the S&P/TSX Composite index analyzed in the report
- Toronto Stock ExchangeThe stock exchange where Canadian equity funds operate
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Toronto Stock ExchangeSpeculative
The Toronto Stock Exchange might experience changes in trading demand as investors adjust strategies.
Keep exploring
The entities involved
-
S&P
Japanese company