87% of Canadian active equity funds trail TSX in first half

87% of Canadian active equity funds underperformed the S&P/TSX Composite in the first half of 2026, when the index gained 11.2%, according to the SPIVA Canada Mid-Year 2026 Scorecard from S&P Dow Jones Indices.

The record worsens with horizon: failure rates ran 93.3% over one year, 92.2% over three, 96.0% over five and 98.8% over 10, the scorecard states. Adjusted for volatility, every U.S. and international stock fund in the study trailed its benchmark over the decade, as did 99.4% of global stock funds and 98.1% of Canadian-focused funds.

For advisors with Canadian equity in client portfolios, an active mandate is now measured against a benchmark that beat 87% of those funds over six months and 98.8% over 10 years, the scorecard shows. Manager selection did not fix the result: top-tier funds underperformed market averages in five of seven categories.

The index's 11.2% gain came mostly from three of 11 broad industry categories, and 52.8% of S&P/TSX Composite constituents failed to match the index. Technology stocks trailed the market average by 28.7% and telecoms by 16.0%, and managers who moved money away from large banks and energy producers to diversify were hit hard.

The gap widened at the bottom: for the worst-performing quarter of funds, the shortfall against market averages averaged 7.3% overall and reached 12.8% for international stock funds.