[{"data":1,"prerenderedAt":89},["ShallowReactive",2],{"term:alpha":3},{"term":4,"related":76},{"id":5,"title":6,"body":7,"category":58,"description":59,"extension":60,"faq":61,"meta":62,"navigation":63,"path":64,"related":65,"seo":69,"stem":70,"takeaways":71,"__hash__":75},"terms\u002Fterms\u002Falpha.md","Alpha",{"type":8,"value":9,"toc":51},"minimark",[10,15,19,22,26,34,38],[11,12,14],"h2",{"id":13},"understanding-alpha","Understanding Alpha",[16,17,18],"p",{},"Alpha measures whether a fund manager or strategy added value compared with a relevant benchmark, such as the S&P 500 for large U.S. stocks.",[16,20,21],{},"Positive alpha means outperformance; negative alpha means underperformance. Most actively managed funds have historically struggled to deliver positive alpha after fees over long periods.",[11,23,25],{"id":24},"in-2026","In 2026",[16,27,28,29,33],{},"Positive alpha is hard to sustain. According to S&P Dow Jones Indices' SPIVA research, about ",[30,31,32],"strong",{},"90%"," of actively managed U.S. large-cap funds underperformed the S&P 500 over the 15 years to the end of 2025.",[11,35,37],{"id":36},"sources","Sources",[39,40,41],"ul",{},[42,43,44],"li",{},[45,46,50],"a",{"href":47,"rel":48},"https:\u002F\u002Fwww.spglobal.com\u002Fspdji\u002Fen\u002Fspiva\u002Farticle\u002Fspiva-us-year-end-2025\u002F",[49],"nofollow","S&P Dow Jones Indices: SPIVA U.S. year-end 2025",{"title":52,"searchDepth":53,"depth":53,"links":54},"",2,[55,56,57],{"id":13,"depth":53,"text":14},{"id":24,"depth":53,"text":25},{"id":36,"depth":53,"text":37},"investing","The return an investment earns above (or below) its benchmark, after adjusting for risk.","md",[],{},true,"\u002Fterms\u002Falpha",[66,67,68],"beta","sharpe-ratio","index-fund",{"title":6,"description":59},"terms\u002Falpha",[72,73,74],"Alpha is performance relative to a benchmark.","Fees often turn small positive alpha negative.","Consistent alpha over long periods is rare.","0-h0rmJ09HCq2vEdnJGL9JAXnKMofiZUAvNahQEKqTM",[77,81,85],{"title":78,"description":79,"path":80},"Beta","A measure of how much a stock moves relative to the overall market.","\u002Fterms\u002Fbeta",{"title":82,"description":83,"path":84},"Index Fund","A fund built to match the performance of a market index.","\u002Fterms\u002Findex-fund",{"title":86,"description":87,"path":88},"Sharpe Ratio","A measure of return earned per unit of risk taken.","\u002Fterms\u002Fsharpe-ratio",1793374004406]