Many funds don't try to outperform the market, but instead limit drawdown. That's because everyone is a huge fan of ETFs when the market is doing fine, but many people don't have the nerve to hold ETFs during a downswing. Thus these funds try to reduce losses during recessions at the cost of somewhat lower profits during booms. It's a valid trade-off, but if you have a long investment horizon and good nerves, then ETFs are probably the better choice. If you don't, you stand to make great losses with ETFs by buying high and seeking low.