The chart of the week highlights the percentage of active funds that have beaten their benchmarks from 1999 through 2025. Over the years, performance has fluctuated sharply, with highs above 50% and lows dipping below 20%. So far, 2025 has been especially difficult, with only about 22% of active funds outperforming the market as of September 30, one of the weakest showings in decades. The challenging environment for active managers likely reflects limited exposure to the world’s largest companies, such as the “Magnificent 7” and their peers. We’ve discussed for years how index concentration can work both ways, and this year it’s favored the concentrated stocks, which have again outperformed the broader market. Overall, the data underscores how consistently beating market benchmarks remains a persistent struggle for active fund managers.