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Active multi-asset portfolios underperform index benchmarks

The analysis argued that randomly selected active fund portfolios, even in a multi-asset 60/40 allocation, underperformed their index benchmarks 97% of the time over a ten-year period.

PWL Capitalon The Rational Reminder Podcast

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The story so far

REVIVED · 56 MENTIONS · 46 EPISODES · 19 SHOWS

31 JUL 2025 — 11 AUG 2026 · 1W AGO

10 SUPPORT · 4 CHALLENGE · 10 UPDATE · 2 REPEAT · 30 MENTIONED

31 JUL 2025 · FIRST HEARD
THE RATIONAL REMINDER PODCAST · 2 MENTIONS
- Stock return dispersion remains high, aiding active managers
- Index construction, not funds, drives 'bad timing' cost
33 EPISODES BETWEEN · 40 MENTIONS
1. 7 AUG 2025
  THE RATIONAL REMINDER PODCAST · 2 MENTIONS
  - More portfolio handling leads to smaller returns
  - Don't look for the needle, buy the haystack
2. 10 AUG 2025
  CHOOSEFI
  - Broad index funds over stock picking
3. 2 SEP 2025
  THE LONG VIEW
  - Low-cost investing as the core principle
4. 4 SEP 2025 · UPDATES
  THE RATIONAL REMINDER PODCAST
  - Indexing's edge: winners are impossible to identify
5. 11 SEP 2025
  THE RATIONAL REMINDER PODCAST
  - Wisdom-of-crowds TDF as an indexing innovation
6. 30 SEP 2025
  THE LONG VIEW
  - Target date funds praised for retirement simplicity
7. 20 OCT 2025
  THE MEB FABER SHOW
  - Focus on savings rate over investment returns
8. 23 OCT 2025
  THE RATIONAL REMINDER PODCAST
  - Diversify, minimize fees, don't chase performance
9. 30 OCT 2025
  THE RATIONAL REMINDER PODCAST · 3 MENTIONS
  - Index funds capture market returns, avoid active risk
  - Successful investing is capturing market returns · UPDATES
  - Active management faces near-impossible hurdle · CHALLENGES
10. 6 NOV 2025
  THE RATIONAL REMINDER PODCAST
  - Indexing allows for sophisticated portfolio construction
11. 7 NOV 2025
  BARRON'S STREETWISE
  - Index funds beat stock picking
12. 7 DEC 2025 · UPDATES
  CHOOSEFI · 2 MENTIONS
  - Index funds over individual stocks for beginners
  - Long-term index investing over speculation · CHALLENGES
13. 18 DEC 2025
  THE RATIONAL REMINDER PODCAST · 2 MENTIONS
  - Adviser portfolios often random, not diversified
  - The 'ETF slop' problem obscuring simple investing
14. 22 DEC 2025
  CAPITAL ALLOCATORS
  - Mega-cap tech killed active management alpha
15. 1 JAN 2026
  THE RATIONAL REMINDER PODCAST
  - Global diversification as the behavioral challenge
16. 6 JAN 2026
  THE LONG VIEW · 2 MENTIONS
  - Indexing captures concentrated gains · UPDATES
  - Three-fund portfolio as a core satisficer strategy
17. 15 JAN 2026
  THE ALPHA EXCHANGE
  - Benchmark outperformance is a foolhardy fight
18. 20 JAN 2026
  THE KNOWLEDGE PROJECT · 2 MENTIONS
  - Patience as the key to wealth via index funds
  - Simple index fund investing as optimal strategy
19. 27 JAN 2026
  GOLDMAN SACHS EXCHANGES
  - S&P 500 as the core, passive holding
20. 28 JAN 2026 · UPDATES
  YET ANOTHER VALUE PODCAST
  - Power law returns overstated by index math
21. 29 JAN 2026
  THE RATIONAL REMINDER PODCAST
  - Discipline as the best defense against uncertainty
22. 31 JAN 2026
  AFFORD ANYTHING
  - Beating the market is extremely hard
23. 1 FEB 2026
  WE STUDY BILLIONAIRES - THE INVESTORS PODCAST NETWORK
  - Simple 90/10 index-fund portfolio with rebalancing rule
24. 3 FEB 2026
  AFFORD ANYTHING
  - All-weather portfolio as the antidote
25. 13 FEB 2026
  THE BUSINESS BREW
  - The 'lazy investor' Peter Lynch approach
26. 22 FEB 2026 · UPDATES
  CHOOSEFI
  - The simple path to wealth is the only secret
27. 26 FEB 2026 · CHALLENGES
  THE RATIONAL REMINDER PODCAST
  - Hedge funds are a bad deal for retail
28. 27 FEB 2026
  AFFORD ANYTHING
  - Long-term index fund trajectory remains upward
29. 10 MAR 2026 · UPDATES
  AFFORD ANYTHING
  - Dimensional's factor tilts by removing losers
30. 10 MAR 2026
  THE TIM FERRISS SHOW
  - Invest in Vanguard index funds for lifetime wealth
31. 12 MAR 2026
  THE RATIONAL REMINDER PODCAST
  - Index funds as a superior consumer choice
32. 19 MAR 2026
  CAPITAL ALLOCATORS
  - Active management's underperformance has structural causes
33. 23 MAR 2026
  CAPITAL ALLOCATORS
  - Indexing inherently beats average active manager
16 APR 2026
THE RATIONAL REMINDER PODCAST · 2 MENTIONS
- Active multi-asset portfolios underperform index benchmarks · THIS IDEA · CHALLENGES
- Index funds benefit investors via lower fees
5 EPISODES BETWEEN · 6 MENTIONS
1. 17 APR 2026 · UPDATES
  AFFORD ANYTHING
  - Broad market index funds over stock picking
2. 20 APR 2026
  CAPITAL ALLOCATORS · 2 MENTIONS
  - Total market indexing as the simplest, purest approach
  - Index product selection based on logical, enduring factors
3. 22 APR 2026
  ANIMAL SPIRITS
  - Buy-and-hold as the baseline strategy
4. 22 APR 2026
  WEALTHION - BE FINANCIALLY RESILIENT
  - High active share key to outperformance
5. 23 APR 2026
  THE RATIONAL REMINDER PODCAST
  - Index funds' role is to represent the market
28 JUL 2026 · 3W AGO
OPTIMAL FINANCE DAILY
- Index funds beat individual stock stock-picking
31 JUL 2026 · 3W AGO · UPDATES
PROF G MARKETS
- Core advice: index for bulk, speculate small
31 JUL 2026 · 3W AGO · UPDATES
AFFORD ANYTHING
- Index funds beat active management
2 AUG 2026 · 2W AGO
MOTLEY FOOL MONEY
- S&P 500 index funds are now a concentrated AI bet
6 AUG 2026 · 2W AGO
THE RATIONAL REMINDER PODCAST
- Indexing wins by capturing the few big winners
11 AUG 2026 · 1W AGO
THE LONG VIEW
- Diversification as the key to survival

HOW THE SHOWS HAVE DISCUSSED THIS THESIS OVER TIME · NOT A PERFORMANCE RECORD