Pisanti noted that, on average, 68% of active managers underperform their benchmarks. Asking Lydon what he thinks about all of this, Lydon said, “it is good news for the ETF space,” and noted that several new active managers are arriving on the scene, including firms like Matthews Asia and Neuberger Berman. Lydon continued, “it is really tough to beat the S&P 500, especially when the markets are doing well.” Ganti said, “it is interesting to think about sectors in this environment,” alluding to energy’s spectacular performance. Given how little of the S&P 500 is exposed to energy – roughly 4%, Lydon wonders why there aren’t even more asset managers who were able to find opportunities and perform even better. Lydon said, “I think there’s too much sector hugging, which is impeding the ability of advisors and managers to beat their benchmarks.”