Benchmark

What does it Mean? A standard against which the performance of a security, mutual fund or investment manager can be measured. Generally, broad market and market-segment stock and bond indexes are used for this purpose.
Investopedia Says... When evaluating the performance of any investment, it's important to compare it against an appropriate benchmark. In the financial field, there are dozens of indexes that analysts use to gauge the performance of any given investment including the S&P 500, the Dow Jones Industrial Average, the Russell 2000 Index and the Lehman Brothers Aggregate Bond Index.

Terms Related Links

After-Market Performance
Benchmark Bond
Bogey
Index Fund
Index Hugger
Lipper Indexes
Passive Management
Russell 2000 Index
Wilshire 5000 Total Market Index - TMWX
World Equity Benchmark Series - WEBS

Terms Related Links
Benchmark Your Returns With Indexes - If your portfolio is always falling short, you may not be making an apples-to-apples comparison.

Measuring And Managing Investment Risk - Risk is inseparable from return. Learm more about these measures and how to balance them.

Negotiating For Employment Perks - Find out how to get more than money from your employer.

Special Feature: Mutual Funds - Mutual funds are an inexpensive and easy way to benefit from diversification and professional management. See our mutual fund feature for everything you need to know.

Make Your Portfolio Safer With Risky Investments - A high-risk security can reduce risk overall. Find out how it works.

Why Fund Managers Risk Too Much - Your portfolio may be subject to greater losses than you realize.

Is Your Portfolio Beating Its Benchmark? - Compare portfolio manager performance using the information ratio.

Get The Most Out Of An Investor Conference - Read between the lines to get a sense of where a company is really headed.

Index Investing - Get to know the most important market indices and the pros and cons of investing in them.

Evaluating Your Broker - Make sure you're getting the best service by staying informed and involved.

Active Share Measures Active Management - A 2006 study proves the effectiveness of a new way of sizing up your portfolio manager.

A Market By Any Other Name - Be in the know - learn about the five most talked about indexes and what makes them all different.

The ABCs Of Stock Indexes - Indexes can track market trends, but they're not always reliable. Can you trust them?

Investing 101: Conclusion - Test your investment savvy.

The New World Of Emerging Market Currencies - Take advantage of foreign currency markets without stepping out of your house.

What does it mean when people say they "beat the market"? How do they know they've done so?

Is tracking error a significant measure for determining ex-post risk?

What should I use as a benchmark for my small-cap stock portfolio?




add investopedia foot
www.investopedia.com