If most funds (>80%) cannot beat the SP500 in the long run, why don't the investors just buy the SPY themselves? At least it wouldn't collapse. Is there any problem with the ETF? I feel the funds trying to deceive the public that they could perform better than the indices. They also try to denounce the ETF DIY so they could take more money from the fool. In reality, the opposite is true.
the interesting statistics would be what percentage of fund can beat the snp for several years in a row, and what part of the 10%best runner fund a given year are among the 10% best fund the next. i think i've read somewhere that during the last 20 years average yearly return for the us mutual fund industry was 3%