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The Factsheet Tricks, 4 of 10

The vanishing funds

Funds that did badly get closed or merged, so the ones left look better.

What it is

When a fund closes or merges into another, its record usually stops being shown. A line-up of today's funds, or an average across them, leaves out the ones that didn't make it.

Why it works

  • Only about a third of US large-cap funds that existed 20 years ago are still around.E2b
  • Leaving out funds that closed can flatter average fund returns by around 1 percentage point a year, according to academic estimates.E20
Example Growth FundOur fund range

Illustration, not a real fund

  • Every fund in our range is ahead of its peers

    Every fund still open, that is. Only about a third of US large-cap funds that existed 20 years ago are still around.E2b

Range shown as at the date of this document.

How to spot it

  • Ask how many funds the provider has closed or merged, and how they performed.
  • Be wary of averages that only include funds still open today.

What OpenFactsheet does

Analyzes the whole record you give it, gaps included, and flags missing months.

Get a free second opinionTry the example

Sources

  • E2b S&P Dow Jones Indices (2026). SPIVA U.S. Scorecard, Year-End 2025.
  • E20 Elton, E.J., Gruber, M.J. & Blake, C.R. (1996). "Survivorship Bias and Mutual Fund Performance." Review of Financial Studies 9(4), 1097–1120. Carhart, M.M., Carpenter, J.N., Lynch, A.W. & Musto, D.K. (2002). "Mutual Fund Survivorship." Review of Financial Studies 15(5), 1439–1463.

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Your money deserves more than a sales pitch. These are techniques, not accusations. We don't name or rate any fund or firm.

OpenFactsheet does not name, rate or recommend any investment or firm. The practices described are documented in research and regulation; see Sources.