Pro Full levels on educational trade ideas & Pro Hub - 7-day free trial, then $5.90/mo. Cancel anytime.

News · Equities · MarketWatch · Fri, Oct 9, 2026 5:00 PM

AI stock-picking still lags index funds, study shows

Image from the source feed · MarketWatch

A new report shows AI-based stock selection hasn't improved year-to-year outperformance against broad-market index funds.

A recent study confirms that AI‑driven stock selection has not made it easier for investors to beat the market this year.

AI vs. Index Funds

Despite growing interest in artificial intelligence for portfolio construction, the report finds that active AI strategies still lag behind broad‑market index funds in terms of outperformance.

These findings reinforce the long‑standing view that passive index investing remains a robust benchmark for equity markets.

Based on reporting from MarketWatch. Read the original.

OpenBook analysis

Market impact

The study suggests that AI-based equity strategies may struggle to consistently outperform passive index funds, potentially prompting investors to reassess the value of active AI approaches. Traders and portfolio managers may keep a close eye on AI-driven funds to gauge their performance relative to broad-market benchmarks.

General market context for education only, not investment advice.

This briefing was summarized with automated tools from public reporting by MarketWatch and is general market information, not investment advice. Editorial policy & corrections