The Globe and Mail reports in its Wednesday edition that a recent S&P Dow Jones publication showed that 52 per cent of funds in Canada underperformed their benchmark in 2022. Guest columnist Trevor Scott writes that figure increased to 84 per cent over a three-year period and 93 per cent over the past five years. In the United States, the study went back 20 years, and indeed even greater underperformance occurred, with 95 per cent of funds tracking the S&P 500 not meeting their benchmark. Mr. Scott, a fund manager, says he has always told friends and family that they should just go passive with low-cost index funds. For years, also recommended friends and family focus exclusively on the U.S. owing to a relatively attractive valuation and higher sector diversification. However, it seems increasingly likely that the bank- and resource-dominated Toronto Stock Exchange is poised to outperform the now tech-heavy S&P over the next 10 years. Today the S&P trades at a whopping 4.2 times value, while the TSX remains at just 1.8 times. Today's lower valuation for the TSX comes with potential macroeconomic upsides that lead him to believe the TSX generally has rosier prospects than the big U.S. exchanges.