Camille Van Vyve
27 Mar 2025
In 2024, ETFs delivered better market growth capture than active management
More than ever, the index investing strategy advocated by Easyvest stands out. In 2024, a year marked by remarkable market growth, ETFs enabled investors to achieve returns that often significantly outperformed those offered by traditional Belgian active management. Over the long term, index investing consistently ranks at the top of our comparative analysis.
Index investing outperformed active management in all market contexts
The past three years have been an enlightening laboratory for analyzing the index approach promoted by Easyvest. In 2022, during a bearish market, this strategy remained the most competitive over the long term and minimized losses for aggressive profiles. In 2023, ETF investments allowed investors to benefit from the market rebound better than any other strategy. And in 2024, a year of remarkable market growth (+24,2% for the global index), this approach undeniably outperformed traditional active strategies, with significant return gaps across all profiles and investment horizons. Over the long term, investing in ETFs proves to be remarkably effective.
On average, the return gap between index investing and active management is 2,3%
For 2024, the annual average return gaps observed between the index approach and traditional active funds were substantial: 2% for defensive profiles, 3,9% for moderate profiles, and 4% for aggressive profiles. Over three years, the difference is less pronounced due to the impact of 2022, but it widens again over time. Over ten years, the average return gaps observed are 1,8%, 2,5%, and 2,7% depending on the investment profile. Ultimately, across all horizons and profiles, the average annual gap between index investing and active management is 2,3%. Over the long term, this difference can create substantial added value for ETF investors.
Don't miss our article "How to invest in ETFs in Belgium?" to jump on the train of index investment.
Stock investors benefit significantly from ETFs
While ETFs clearly benefit all types of investors, stock index investors are the big winners in our comparison. They are the ones for whom the gap with the competition is most pronounced, and the only ones to achieve annual average returns greater than 8%, already after five years of investment. Cumulatively, this translates to a 50% return over five years and a 120% return over ten years.
Conservative investors see smaller rewards
While 2024 was exceptional for equities, it was a calmer year for the bond market (+1,7% for eurozone bonds). It wasn’t until mid-year that the European Central Bank began lowering rates, and the subsequent bond rally was curbed toward the year’s end by weaker-than-expected rate cut prospects for 2025. As a result, moderate and conservative investors achieved less impressive returns than stock investors. Still, with portfolio growth of +14,8% and +9,2% respectively in 2024, it can still be considered an excellent year! ETFs have also enabled conservatives investors to come back into positive return zone over the past three years.
Active managers struggle to beat the market
We’ll never tire of repeating it: over the “long” term (5 years and beyond), and in all market contexts, the market is unbeatable! Not only does the extra cost paid by investors to active managers for better protection during downturns seem unjustified, but it also fails to deliver better performance during upturns. This loss becomes significant for long-term investors: over ten years, the cumulative return gap between an ETF portfolio and an actively managed aggressive portfolio is 50% compared to the average performance of the funds studied, and 60% compared to the worst-performing fund.
Underperformance masked through fund reshuffling
Another important observation: fund creations, closures, and mergers are common among active managers. While the intention is probably to regularly streamline product ranges, this complicates matters for clients and makes fund performance histories difficult to decipher. For example, we had to adapt the dynamic fund analyzed for KBC in 2024 due to a merger with the previously studied fund. The same applies to ING, for which we had already had to revise our analysis last year, and for which we unfortunately lack a ten-year history for the dynamic fund.
Request a free audit of your portfolio
Every situation is different and deserves a personalized analysis. Do you have a managed portfolio with a Belgian financial institution and have questions about its performance? Send us a recent management report, and we’ll provide a complete comparative analysis within 24 hours. Presented in infographic form, this report compares the performance of your current portfolio with a comparable index portfolio in terms of risks. One of our managers will then contact you to review the analysis and discuss your goals transparently.
Methodology and sources
You can find more details about the non-speculative approach and the performance of the investment funds examined in the infographic below. The methodology and data sources used are also detailed there.
Simulate your return and invest now
Want to know what returns you could achieve with an index portfolio at Easyvest? Run a simulation now by clicking the link below.