We have found through research that 78% of small cap managers were unable to beat the index. The news is even worse for longer periods of time. Over the past 10 years, 84% of small cap managers were unable to beat the index. In the past, it was believed that actively managed funds by active managers could find companies that weren't being covered, find out the information, exploit that information by making investment decisions that they could profit from. This doesn't happen often anymore because there are more analysts now covering more companies and any investment manager can purchase a software now to get updated financial information on any publicly traded company. Fees are very high for actively managed small cap fund's, the average fee is 1.61%. Whereas, the index fund costs .06%. It will only become more difficult going forward in the future for active managers to consistently outperform their benchmark in the index.