Alpha vs beta investing discussions on Wall Street point to alpha’s dominance during Fed policy uncertainty, as active managers pivot quicker than index-tracking beta investors. Beta might also be referred to as the return you can earn by passively owning the market. You can’t earn alpha by investing in a benchmark index fund such as an S&P 500 index fund , which is the definition of beta. Past performance does not guarantee future results, which may vary. The value of investments and the income derived from investments will fluctuate and can go down as well as up. A loss of principal may occur. Alpha vs beta investing sentiment surveys among asset managers found 62% expect alpha’s edge to widen in the next quarter, citing earnings dispersion and higher volatility premiums across equities.
