Average Investor Shines, then Sputters at Finish Line

After 9 Months of Market-beating Performance, Investors Get it All Wrong in 4th Quarter

Marlborough, Massachusetts, UNITED STATES

Marlborough, MA, April 12, 2018 (GLOBE NEWSWIRE) -- (Marlborough, MA. April 9, 2018) A study by DALBAR, Inc. shows that the average equity fund investor was able to navigate a friendly 2017 market but could not keep it up throughout the year. At the end of September the average equity fund investor was outperforming the S&P 500 by 1.24% year-to-date.  What followed was a series of disappointing months in which the average equity fund investor underperformed the S&P 500 by 0.40%, 0.96%, and 0.82% in the months of October, November and December respectively. All told, the average equity fund investor earned 20.64% on the year while the S&P 500 earned 21.83% in 2017.

DALBAR’s Quantitative Analysis of Investor Behavior Study (“QAIB”) has been analyzing investor returns since 1994 and has consistently found that the average investor earns much less than market indices would suggest. In 2017 the average investor did underperform the market in the end but to their credit, only by a slim margin. “The average equity fund investor underperformed the S&P by 1.19%, which isn’t too bad when you consider the average investor is paying fees that an index does not reflect.” said Cory Clark, Director at DALBAR, Inc. “Investor underperformance is most acute during market turmoil.  A consistently rising, non-volatile market was the perfect arena for the average investor to hold their own.”

The full report of the recently released 24th Edition of DALBAR’s Quantitative Analysis of Investor Behavior (QAIB) is available for purchase from DALBAR.  Visit the QAIB Store for all of this year’s QAIB products at www.QAIB.com, call 617-723-6400 or email QAIB@dalbar.com.

DALBAR, Inc. is the financial community’s leading independent expert for evaluating, auditing and rating business practices, customer performance, and service. Launched in 1976, DALBAR has earned the recognition for consistent and unbiased evaluations of investment companies, registered investment advisers, insurance companies, broker/dealers, retirement plan providers and financial professionals. DALBAR awards are recognized as marks of excellence in the financial community.


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