DALBAR Releases 30th Annual QAIB Report
Investor Behavior Continues to Hinder Returns
(Marlborough, MA, April 11, 2024) 2024 marks the 30th annual DALBAR Quantitative Analysis of InvestorBehavior (QAIB) report, the nation’s leading study on investor behavior since 1994. The recentlyreleased report looks at how investor behavior influences investment returns from 1985 through 2023and explores the psychological and practical implications of a strong market year in 2023 after a verychallenging year for investors in 2022. Despite strong market performance in 2023, investor behaviorcontinues to hold back returns when compared with the market. The Average Equity Fund and AverageFixed Income Investor's performance in comparison with market benchmarks is revealed and the reportprovides a framework to improve investor returns by managing behaviors that cause investors to actimprudently.
Key Findings:
- The Average Equity Fund Investor Underperformed the Market: The Average Equity Investorearned 5.5% less than the S&P 500 in 2023, the 3rd largest investor gap in the last 10 years.
- The Average Fixed Income Investor Underperformed to a Lesser Degree: The Average FixedIncome Investor earned 2.63% less than the Bloomberg Barclays Aggregate Bond Index gain.
- Emotional Decisions Hurt Returns: Investors tend to sell out of investments during downturnsand miss out on rebounds. The report illustrates the importance of a long-term investmentstrategy.
- Retention Rates Increased: The Average Equity Fund Investor held onto equity funds for alonger period in 2023 compared to 2022.
After dismal returns for the Average Equity Fund Investor in 2022 of -21.17% compared with the S&P500 return of -18.11%, the Average Equity Fund Investor experienced an even higher gap against themarket in 2023, experiencing returns of 20.79% compared with the S&P 500 returns of 26.29%.
To learn more and purchase the QAIB report, please visit www.qaib.com or contact us atinfo@dalbar.com
About DALBAR
DALBAR has a 46-year history and is recognized by the industry and government as an independentthird-party expert in the business of providing audits, evaluations, ratings, and due diligence. DALBARcertifications are recognized as a mark of excellence in the financial services community.
